KUALA LUMPUR (Oct 9): BMW Group Malaysia may raise vehicle prices should the ringgit weakens past the 5.0000 level versus the euro for a prolonged period.

For now, BMW Group Malaysia managing director and chief executive officer Alan Harris said it would maintain prices despite huge profit margin compression due to the weak ringgit.

"All of our cost is denominated in euro and we have been absorbing the escalating cost.

"I cannot ascertain the time frame as to when the price hikes will be taking place. It is much dependent on the forex (foreign exchange) trend going forward," he said.

Harris said this to reporters after unveiling the second generation of BMW's premium compact sports activity vehicle BMW X1 sDrive 20i here today.

A weaker ringgit against the US dollar, euro and yen translates into costlier vehicle and automotive-component imports into Malaysia.

Costlier imports are expected to curb automotive companies' profit due higher input expenses. As such, UMW Toyota Motor Sdn Bhd said last Monday it had "no choice" but to increase the prices of Toyota and Lexus vehicles in January next year.

Today, BMW will be closely watching the ringgit-euro exchange rate. At 1.37pm, the ringgit strengthened to 4.6488 against the euro. This compared to the strongest level at 3.8567 on April 28, 2015 and weakest point at 5.0504 on Sept 29 this year.

Harris said today the current exchange rate was still at a "manageable level" although the existing backdrop had not augured well for BMW sales here.

Year-to-date, BMW Group Malaysia's sales contracted to 6,522 cars from 6,589 units a year earlier.

Despite the contraction, Harris said BMW Group Malaysia was optimistic that sales this year could exceed last year's figure. He said sales growth would be driven by BMW's product range and newly-launched BMW X1 sDrive 20i.

The retail price on the road (excluding insurance) for the BMW X1 sDrive 20i is RM279,800.

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