Audi threatens to pull away its investments

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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