Audi India, the Indian subsidiary of the German automobile manufacturer Audi has announced a hike in prices across its car model range in India. The highest increase in price has been implemented on the fully built units (FBU) of 13-14 percent while the locally manufactured models have become costlier by 3.4-3.7 percent.
According to Mr. Michael Perschke Head Audi India, the hike in car prices across all models is not only in response to the increase in the excise duty on automobiles in India but is also a part of re-evaluating its pricing strategy in India.
The customs duty on FBU car models has been increased from 60 percent to 75 percent. Hence, these cars have seen the highest price hikes in the range of 13-14 percent. In addition, the hike in the excise duty from 22 percent to 27 percent has resulted in an increase of 3.4-3.7 percent in the prices of car models such as the Audi A4, the Audi A6 and the Audi Q5.
However, the company expects sales to improve in the second half of 2012 with relaxation in the interest rates.
