BMW hikes prices by 3-5.5% from April due to import duty rise in spare parts

BMW models range from a low Rs 30 lakh to over Rs 2 crore in the country due to high import duty, which runs up to 130 percent

PTI March 29, 2018 18:13:54 IST
BMW hikes prices by 3-5.5% from April due to import duty rise in spare parts

Chennai: The second largest luxury car maker, BMW India, on Thursday announced a 3-5.5 percent hike in prices across its models from April following the import duty hike on spare parts.

As part of its 11th year anniversary of its manufacturing plant in Chennai, the company on Thursday also unveiled a skilling initiative across engineering colleges and other technical institutes like ITIs across the country under which it hopes to train "tens of thousands of students over the next few years".

"Our prices will go up by an average 3 percent to a maximum of 5.5 percent depending on the model. This is to reflect the import duty hike in the budget on CKDs," Vikram Pawah, the president of BMW Group India said here flanked by the company's brand ambassador Sachin Tendulkar after announcing skilling initiative called Skill Next.

Finance minister Arun Jaitley had in 2018-19 budget increased the custom duty on CKD (completely knocked down) imports from 10 percent to 15 percent.

BMW hikes prices by 355 from April due to import duty rise in spare parts

BMW hikes prices by 3-5.5% from April due to import duty rise in spare parts. Reuters image.

The company, which has invested over Rs 1,250 crore in the country since 2007, completed 11 years of manufacturing operations here today, while its parent turned 100 three days ago.

The plant makes eight models and the ninth one, Mini Cooper Countryman, will be rolled out in June. It's eighth model, X3, was rolled out on the centenary celebrations of its parent three days ago. Its other locally made models include the 3,5, and 7 series apart from X1, X3 and X5 series.

BMW models range from a low Rs 30 lakh to over Rs 2 crore in the country due to high import duty, which runs up to 130 percent.

Explaining the rationale for the CSR initiative, under which the company has also registered a foundation, Pawah said, "The next phase of growth in luxury car market will come from the small towns. And that means we need tens of hundreds of trained manpower in those markets. I hope the Skill Next will go a big way in meeting those requirements."

Pawah said around 100 engineering colleges and over 60 industrial training institutes have already signed up for the programme, apart from the Anna University.

"Going by the initial response, I am confident that we will be able to train tens of thousands students," Pawah said.

Skill Next will see the company, which is on a strong revival path after years of being down in the dumps in the volume sweep stake, with a 25 percent spike in volumes in 2017 at 9,800 units, delivering as many as 365 BMW engines and transmissions to engineering colleges across the states on a first come first served basis.

Updated Date:

also read

Yamuna Expressway Authority purchased ‘imaginary land’ in 2015? CAG flags loss of crores
India

Yamuna Expressway Authority purchased ‘imaginary land’ in 2015? CAG flags loss of crores

The Audit noticed in March 2019 that out of 150 khasras of revenue records, the actual area in 17 khasras was 6.3990 hectares. The YEIDA, however, overlooked the area actually available in land records and purchased an area measuring 7.989

Reliance JioPhone Next 5G’s specifications and price of leaked, likely to be priced between Rs 8,000-12,000
News & Analysis

Reliance JioPhone Next 5G’s specifications and price of leaked, likely to be priced between Rs 8,000-12,000

Reliance Jio could launch their upcoming 5G Smartphone, the JioPhone Next 5G soon. The device will be priced between Rs 8,000 to Rs 12,000, and could feature a Snapdragon 480 SoC and a 6.5-inch LCD HD+ display.

Best Android Tablets under Rs 20,000: Realme Pad X, Oppo Pad Air to Samsung Galaxy Tab A8
News & Analysis

Best Android Tablets under Rs 20,000: Realme Pad X, Oppo Pad Air to Samsung Galaxy Tab A8

Here are the best all-round Android tablets currently selling in India under Rs 20,000.