Audi India, the domestic arm of German auto maker, has started feeling the heat of significant fall in the value of rupee against the strong US dollar and therefore, has decided to announce a price hike in its entire product portfolio by around 2 per cent to 4 per cent. Sources close to the development process revealed that the price hike will be implemented from July 15, 2013. On this increase, industry experts are of a view that a large number of Audi cars are either imported or brought in as a Completely Knocked Down form in the Indian auto market.
Expressing his views at the recently announced price hike, the Head of Audi India, Michael Perschke was quoted as saying, “The overall market scenario is challenging. The depreciating rupee and rise in input cost have made us re-evaluate our pricing strategy in India and increase the prices of the entire range. However, we are offering the customers customized and innovative finance options from Audi Finance which will make their purchase more attractive.”
Owing to this, with the devaluation in rupee's value by almost 8 per cent to 10 per cent in the last one year had severely affected the profit margins of the luxury car maker. It must be noted that with effect from July 15, the price of Audi Q5 Sports Utility Vehicle (SUV) will be increased by Rs. 1.52 lakh, whereas Audi A6 premium sedan and Audi R8 sports car will witness a hike of Rs. 1.8 lakh and Rs. 4.42 lakh, respectively.
In June 2013, the brand with four rings reported sales of 750 units, marking a growth of 4 per cent, under the review of figures registered in the corresponding month of 2012. Between the period of January to June 2013, the company witnessed an increase of 21 per cent as it sold 4846 units to the Indian buyers over 4000 units delivered in the year-ago period. Backed by impressive sales, the auto maker is of a strong belief that it will achieve a growth of 20 per cent by the end of current year and sell more than 10,500 units, despite the dwindling market conditions.