Audi India to raise its car model prices by 2% from 2012

The luxury car manufacturer and the subsidiary of Volkswagen AG, Audi India is another car manufacturer to come up with a price increase of 1-2% from next year. Despite the slowdown in the car industry, it has become inevitable for almost all the car manufacturers to implement a price hike. The conditions are such that even the car manufacturers like Maruti India who had seen an unusually slow year has increased the price of its car models. It is in fact surprising that Audi India has relatively lower percentage of price increase when it is one of the manufacturers to be most affected from the rupee fluctuations.

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The Audi India president, Michael Pershke is the one to inform that the depreciation in the rupee value is hurting them the most to implement the price hike. Right from the cheapest of the Audi’s fleet of cars, the Audi A4 with a price tag of Rs 27.69 lakh to the maximum priced Audi R8 with Rs 1.47 crore almost all the Audi cars are imported into the Indian shores with heavy custom duties.  So, it becomes all the more important for the German luxury car manufacturer to raise its car prices to overcome the increased import costs due to lower rupee exchange value against the dollar. The general inflation on one hand and the dented economy in the European countries are the other underlying factors.

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However, on the other front, Audi India has many other reasons to rejoice. Audi India is one of the few auto manufacturers in the country to see a remarkable growth despite the overall slowdown. Agreed that the luxury car segment is the least affected among the lot, but the German luxury car manufacturer has seen a stupendous 80% growth in the first eleven months of the year. The car manufacturer hopes to see another 40% growth during 2012 with the upcoming two trump cars in its hand. The Audi S6 sedan and the Audi Q3 SUV are slated for a launch in the Q2 and Q3 of 2012 to reach the high ambitions of the luxury car manufacturer.

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