CHENNAI: Luxury carmaker Audi on Friday announced a four per cent hike in prices of all its models to offset the impact of an increase in customs duty announced in the budget. The price increase will range from Rs 1 lakh to Rs 9 lakh and will be effective from April 1, 2018.
“Increase in customs duty and an 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,” said Rahil Ansari, head, Audi India. The company has tried to absorb the impact of the increase in customs duty and has minimised the price hike, he added.
This year’s budget proposes an increase in customs duty of imported engine components and completely knocked down versions of large passenger and commercial vehicles to 15 per cent from the existing 7.5 per cent and 10 per cent, respectively.
Seeking support from the government for the luxury car industry, Ansari said, “There is no doubt that increase in car sales would definitely help the Government in garnering more accumulated taxes.”
Audi India was initially looking at double-digit sales growth this year, but is now expecting a flat year, said Ansari. The company, which has completed a decade of operations in the Indian market, has sold a total of 7,876 units in 2017.