BMW India has decided to increase the prices of the 5-Series between Rs. 60,000-70,000 for both the petrol and diesel versions. The Indian arm of the German auto giant which sold over 947 units of the 5-Series in the first 11 months of 2008-09 is now also offering some additional features such as in car Bluetooth connectivity. The price hike in due to enhancement in the product offering in the 5-Series.
“Fluctuating input prices and adverse exchange rates have posed severe challenges for margins. We have absorbed significant levels of cost escalation, but cannot continue to sustain such levels beyond a point,” a senior representative of BMW India said.
Currently, the 5-Series diesel is priced at Rs 35.9 lakh while the petrol version costs Rs. 42 lakh (ex-showroom Mumbai). BMW India is rolling out 3 and 5 series (accounting for 80% of its overall sales) from its Marai Malai facility at Chennai in Tamil Nadu, and the other models like 7-series, X3, X5 are imported through the completely built unit format. The company imports most of its critical components from its overseas supply base; with only 10% content sourced from the domestic market, which includes seats, leather and door panels.