Audi announces price hike across models from January 1, blames rising input cost
Audi India on Thursday informed ex-showroom prices of all its models offered in the country will see an upward trajectory effective January 1 of the new year. Putting the blame on rising input and operational costs, Audi says a price correction has been deemed the only way forward.
(Also read: Maruti cars to get costlier in new year)
On the back of nine new product launches this calendar year, Audi India has witnessed a stellar surge in sales at a rate of 136%. But the year has also brought its fair share of challenges for the company as well as the Indian automotive industry at large. The global semiconductor shortage continues to pose an unprecedented roadblock while rising input costs have also affected OEMs. “The Audi India strategy focuses on a sustainable business model. To offset rising input and operational cost, a price correction is necessary," said Balbir Singh Dhillon, Head at Audi India. “The new price range of our select vehicles will ensure the brand's premium price positioning, thereby assuring sustainable growth both for the brand and our dealer partners."
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The company further informed that the upward price revision would be up to three per cent across all models.
Audi recently drove in the new Q5 SUV and is banking on the vehicle to further power the company in the new year. And while SUVs offered under ‘Q' account for 45% of the company's total sales here, there is much emphasis on the electric movement as well. Audi India currently has the most extensive EV portfolio among all luxury car manufacturers in the country.
And while EVs in the luxury space may not be volume drivers, Audi says it is a show of intent that is in line with Audi's global vision of cleaner and sustainable mobility. How much then will price hikes impact demand in the luxury space? It remains to be seen.