CHENNAI: The festival season is over and car makers are already gearing up for price mark ups in the new year. Stung by the slide in the rupee, the high import content luxury cars have been the first to announce the hikes. BMW India has announced a price increase from 7 -10% across the BMW and MINI product range effective January 1, 2014.
Said Philipp von Sahr, President, BMW Group India said, "At BMW Group, we believe that both profitability and growth are essential for a win-win situation at the end. We are making price decisions with all due care and consideration ensuring that they pay off in the long run."
Announcing price hikes in January to push year-end st ock has now become standard marketing practice in the auto industry in India. Typically December stock has proved difficult to move because customers prefer new model year cars. Car marketers announce price hikes in January to move the year-end stock before new year.
To help customers drive away in their dream car before1 January 2014, BMW Financial Services India and MINI Financial Services India will offer a range of customized financing solutions. "BMW Financial Services India and MINI Financial Services India will also offer lease for individuals and corporate customers along with insurance solutions through their cooperation partner in India," said the company in a statement.
Car companies have been battling rising input costs through the year with the rupee depreciating sharply against the dollar. Sluggish sales meant that they had fewer volumes to amortise the cost, hence the series of price increases through the year. Mass market car brands have been better able to hold on to their price lines due to high local content and in some cases an export buffer. But luxury cars, with their higher import content, have found it hard to take the currency volatility on the chin. Hence the price mark up.
via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNGgPwGB7a5_N7nKN_ukQl_Wo2R5kA&url=http://timesofindia.indiatimes.com/business/india-business/BMW-announces-price-hike-in-January/articleshow/26427897.cms
0 comments:
Post a Comment