Audi India, the domestic division of German luxury car maker, has reported an increase of 29 per cent in its February 2013 sales. During the period, the auto maker delivered 775 units in the Indian auto market over 600 units sold in the corresponding period of 2012. A major portion in the growth was driven by the auto maker’s utility vehicle range, comprising the models like Q3, Q5 and Q7.
Expressing his views on the sales performance, the Head of Audi India, Michael Perschke, was quoted as saying, “The year has started on a positive note for us with successful launches of the new Audi Q5 and the new Audi R8 in January. We introduced the petrol variant of the hugely popular Audi Q3 in February. Our popular SUV models are enabling us to continue on our growth story.”
However, he also said that the recent declarations in the Union Budget may hurt the sentiments of Indian buyers, which is expected to hit the profits of the German auto maker in the country. He further added, “Increase in imported cars and excise duty on SUVs was very surprising. We will have to seriously evaluate the impact of this hike on our prices and, have no choice other than to pass on to customers.”
Following the announcement of Union Budget, Perschke tweeted that the increase in excise duty will impact the growth of Indian auto industry, as auto makers have to pass this hike to buyers. It must be noted that the Indian auto industry has been already facing pressures from a number of factors like surging fuel prices, input cost, inflation and interest rates, along with the recently added increase in customs and excise duty, which will further dampen the situation.