Audi has decided to increase prices for its vehicles in India by up to Rs 9 lakh. The German luxury auto maker will increase prices by up to four percent across the entire model range. This price hike will come into effect from April 1, 2018.
With this price hike, prices of Audi cars will rise in a range of Rs 1 lakh to Rs 9 lakh. The increase in prices is meant to pass on the effect of customs duty hike in Budget 2018-19, Audi said in a statement.
"The increase in customs duty and introduction of social welfare surcharge in lieu of an education cess (which is higher than the erstwhile cess) in the Union Budget made the increase in price inevitable. We have tried to absorb the impact of the increase in the customs duty and have minimized the price hike for our customers," Audi India Head Rahil Ansari said.
The company is offering various Audi Finance schemes along with sales and service benefits to ease the impact of price rise for prospective buyers, he further added. Ansari suggested that increase in car sales will help government get more accumulated taxes.
Audi's portfolio in India ranges from A3 sedan, with prices starting at Rs 31.99 lakh, to sports car R8 which comes with a price tag of Rs 2.63 crore.
In the Budget 2018-19, finance minister Arun Jaitley had increased customs duty on CKD (completely knocked down) imports of cars, motorcycles and vehicles from 10 per cent to 15 per cent. Customs duty on import of certain parts or accessories of cars and motorcycles were increased from 7.5 per cent to 15 per cent in the Budget.
With the increase in customs duty, other luxury car makers operating in India are also expected to increase prices for their portfolio in coming days.