German luxury car maker BMW launched on Thursday its new sports utility vehicle X1 in India at a price tag of up to Rs 29.9 lakh or Rs 2.99 million (ex-showroom Delhi).

The vehicle will be available in both petrol and diesel variants.

While the petrol option will be available for Rs 22 lakh or Rs 2.2 million (ex-showroom, all-India), the diesel variant will have two options priced at Rs 23.9 lakh (Rs 2.39 million) and Rs 29.9 lakh or Rs 2.99 million (ex-showroom, all-India), respectively, the company said.

"The new BMW 'X1' sets the benchmark by bringing together features of a sports activity vehicle with spontaneous flexibility and outstanding fuel economy," BMW India president Andreas Schaaf said.

The new vehicle will be assembled at the company's Chennai plant.

This sports utility vehicle will be positioned below its existing X3 and X5 SUV models, which are already being sold in the country.