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Audi threatens to pull away its investments

Published On Mar 09, 2011 02:09 PM By CarDekho for Audi A4 2015-2020

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Audi the German car maker has threatened that the luxury car maker might pull away its investments or even sail back from the Indian auto market due to the increasing import prices. The stringent statement given by the German auto maker is due to the Budget proposed by the Indian Government which plans to increase the import duty on CKD. The company feels that heavy import duty by the Indian government will severely affect the car sales of completely knocked down (CKD) units.

Peter Schwarzenbauer, Global Sales and Marketing Head at Audi said that the auto firm was tensed about the new Budget and was looking forward to clear the matter. He also said that pulling back is an option and at present the auto company will not rule out any option.

Schwarzenbauer made a very valid point while saying that at present the Indian luxury car market is at its initial stage. The new rules if implemented, may force the luxury car makers to think before expanding. He also added that for Audi the company will decide on the options during its yearly accounts conference.

The German auto company recently enjoyed booming car sales however, the new budget announcement has played a drop down. The new Budget has proposed an increase in import duty from 10 per cent to 60 per cent, on fully built cars.

If the proposed hike provision will be implemented, an increase of Rs 8 lakh is expected in the car prices mainly in the entry level cars from the auto firms such as Audi, Mercedes and BMW. From the BMW's stable BMW 3 Series and BMW 5 Series saloon and Mercedes X1 the super luxury SUV can be affected. Mercedes C Class and Mercedes E Class saloons will observe a price hike. While Audi A4 and Audi A6 saloons and Audi Q5 SUV will be severely affected.

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2 comments
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cardekho team
Mar 22, 2011, 2:18:15 PM

The Indian Government policies are the biggest culprit here for the hike in duties and all the chaos.

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    raj k thapar fimi
    Mar 10, 2011, 12:15:07 AM

    REF Audi and or other marques import into india ? Duty Hike ? There must have been reasons regarding GOVT thoughts on the import hike at the level prescribed , the ultimate receiver of the brunt will be the consumer , who else . The botteom line is there is a serious demand of these new generation of cars into india , people have made all the marques a success for the importer , obviously there has got to be a compromise line drawn , this can only be done by intervention of serious productive thoughts , india needs to promote manufacturing on its main land . and not imports at all times , the honeymoon period may be pottentially over , namely reduced duty , by allowing such a scale of sales on any product imported has to have a limited shelf life , ? one cannot deny this fact , whichever country taken at face value regarding the situation that has arisen . In the long run the unit count will bear fruition for any manufacturer when a product will manufacture in the same land as sales , surely all manufacturers must understand , and must have thought this potential situation well before entry into india , ? The Govt will look upon this situation with inteligent compromise but needs to be ironed out with sugestions by the manufacturer, not anyone else . may be part manufacture and part import of parts , perhaps half in hike of duty for the sake of consumer ? and assembled in india will creat job prospects for the right workers , surely with india lab rates and pay , its bound to be beneficial to all . The high raqis of all manufacturers understand this equation / dont they . ?

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