German luxury carmaker BMW on Monday said it will increase the prices of its vehicles by up to 2 per cent across the model range from January 1 to partially offset the adverse impacts of fluctuations in foreign exchange rates and rising input costs.

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BMW India's decision to implement a price increase across model range is a response to a confluence of factors, BMW Group India President Vikram Pawah said in a statement.

"In the face of evolving dynamics, fluctuations in exchange rates, and rising input costs, this price adjustment will sustain the crucial balance that allows us to consistently deliver the high standards and power-packed experience our customers associate with BMW vehicles," he added.

BMW India sells a range of luxury vehicles, starting from the BMW 220i M Sport to the BMW XM, priced between Rs 43.5 lakh and Rs 2.6 crore.

The company joins the likes of other passenger vehicle makers such as Maruti Suzuki, Hyundai Motor India, Tata Motors, Mahindra & Mahindra, Honda, and Audi, among others, which have also announced plans to increase vehicle prices in January.