BMW Group India is considering another increase in vehicle prices by next month as the luxury carmaker faces continued pressure from a weakening rupee and rising commodity costs, including copper, President and CEO Hardeep Singh Brar said.
The company has already raised prices three times this calendar year, about 7% cumulatively, with another hike now being considered.
“We have increased prices about 4-5% till now and there is another one around the corner. So the prices will continue to go up for us because of pressure from forex, commodities, etc,” Brar said.
The comments come soon after BMW launched its new 7 Series range on Friday, with both the BMW 740 M Sport and the locally produced BMW i7 priced at Rs 1.95 crore (ex-showroom). The BMW i7 M70 xDrive, available as a completely built-up unit, is priced at Rs 2.65 crore.
BMW had raised prices by up to 3% from January 2026, followed by another hike of up to 2% effective April 1 and a third increase of up to 2% from July 1. The company had cited rising material and logistics costs and rupee depreciation for the revisions.
The latest move, if implemented, would mark BMW’s fourth price revision in 2026, underscoring the continuing cost pressures facing luxury carmakers amid currency volatility and higher input costs.
In 2025, BMW had also raised prices by up to 3% from September 1, 2025, and up to 3% from January 1, 2025.
Despite the repeated price increases, BMW is witnessing strong demand in India, with the company growing at a strong double-digit rate even as the broader luxury car market outside BMW is declining, Brar said.
“BMW is growing at a strong double digit, and I know the rest of the industry is declining,” he said.
Brar attributed BMW’s outperformance primarily to its new product launches, particularly the expansion of its electric vehicle portfolio.
The company expects to sell more than 20,000 cars in India this year, with Brar saying the target is on track. BMW has an installed production capacity of around 50,000 units in India.
Electric vehicles are becoming an increasingly important part of BMW’s sales. EVs accounted for 26% of the company’s sales in the first half of 2026, compared with 21% last year. Brar expects the share to cross 30% in the second half and said it could reach 35-40% next year.
“In the next year we may even cross, I don’t have the numbers we make across even 40%,” he said.
BMW currently locally produces the iX1, i5 and i7 electric vehicles and plans to bring more EVs to India. The company’s strategy is to offer customers a choice of powertrains rather than immediately phase out internal-combustion engine vehicles.
BMW will continue offering ICE models as long as customer demand exists. However, Brar expects diesel vehicles to face pressure sooner than petrol models as India moves towards electrification.
“I think diesel will be the first casualty is what I feel. But I think patrol still has a little long way to go because you don’t see as much of intensity on petrol as you see on the diesel, the narrative from the government,” he said.
BMW is also seeing stronger demand from smaller cities. Brar said the top 10 markets account for around 70% of the company’s volumes, down from about 80% earlier, indicating increasing contribution from tier-II and tier-III markets.
Most of BMW’s models are around 50% localised, he said. The company is also increasing local production of EVs as demand for electric luxury vehicles grows.
BMW is also pursuing an aggressive product strategy in India, with around 25 launches planned for the year, of which about 15 have already been completed. The launches include new models as well as special editions.