German luxury automobile manufacturer Audi’s Indian arm Audi India has announced a price hike on all car models available in India. The price hike up to 4 percent will be effective from July 15, 2013 and the highest price hike will be Rs 4,42,000 on the Audi R8 luxury sports car.
Audi India is among many other carmakers in India who are raising car prices to offset the depreciation of the Indian Rupee which has led to costlier imports for luxury cars. The carmakers are thus talking about passing on the burden to the customers and increasing the prices.
While some automakers had already increased prices in May and June 2013 and are less affected by the higher input costs, others are waiting and watching the rupee’s performance before taking a call. The Indian Rupee has been depreciating and as a result, the volume players in Indian auto industry are facing higher costs for imports, for both CKD as well as CBU auto products.