Audi India, one of the most popular luxury car manufacturers, will probably increase prices for most of its vehicles in India. It is because of two primary reasons that are hike in input costs and the decrease in value of rupee. Sources say that the prices are most likely to go up by 1 per cent to 2 per cent, during the beginning of 2012.
The giant automobile manufacturer has transferred its load to the customers in India. Michael Perschke, Head of Audi India, said, "The exchange rate is hurting us. The input costs are also very high. At this situation, nobody can seriously avoid a price hike." He has, however, not yet confirmed the hike, saying it is going to happen during the initial months of 2012. Most Audi cars are sold in India in the price range of Rs. 27.69 lacs and Rs. 1.50 crores (ex-showroom price of Delhi).
The margin of Indian car manufacturers has received serious blows because of decrease in the value of rupee against U.S. dollar and the increase in raw material costs. To reduce the impact of this menace, Ford, Nissan Motor, Renault, Mahindra & Mahindra, Hyundai Motor, General Motors and Toyota Kirloskar will also be increasing prices of their cars from New Year by up to 3 per cent. Most of the other car manufactures including Maruti Suzuki are also in the process of finalising price hikes. It seems that the New Year is going to be difficult for buyers in terms of car purchase.
