BMW Group India has warned that the sharp depreciation of the Indian rupee against the euro is putting significant pressure on its profit margins, even as the luxury carmaker records strong demand and achieves record first-half sales.
According to BMW Group India President and CEO Hardeep Singh Brar, every ₹1 decline in the rupee’s value against the euro impacts the company’s profit margin by around 1 per cent. He said that the rupee has weakened by nearly ₹18 against the euro since January, resulting in an estimated 18 per cent impact on margins.
The company has partially passed on the increased costs to customers through price revisions. BMW India increased vehicle prices by 5–6 per cent last year and raised them by another 4–5 per cent this year. However, the company said these adjustments have not fully offset the impact of currency depreciation.
BMW India continues to witness strong demand in the luxury vehicle segment, supported by premium models and growing customer interest. However, rising import costs and currency fluctuations remain key challenges for the company’s profitability.
The automaker indicated that further price increases could be considered if the rupee remains under pressure, as it seeks to balance rising input costs with maintaining competitiveness in India’s expanding luxury car market.
