Audi cars in India to become costlier from January
What's the story
Audi India has announced a price hike of up to 3% across its entire range of vehicles, effective from January 1, 2025.
The decision comes in light of the rising input and transportation costs that are putting a strain on the company's operations.
Balbir Singh Dhillon, head of Audi India, said this adjustment is vital for the company and its dealer partners to ensure sustainable growth.
Range affected
Price hike to impact all models
The price hike will impact all models in Audi's product portfolio.
This includes popular cars such as the A4, A6, Q5, Q7 and the Q8 e-tron variants, e-tron GT, and high-performance RS models.
The company's compact offerings such as the Q3 and its Sportback derivative will also witness a price increase.
Cost balancing
Audi's price adjustment strategy
Audi's price adjustment strategy comes as a move to offset increased production costs.
These have been driven up by factors like higher raw material prices, logistical expenses, and exchange rate fluctuations.
The move comes as part of a broader industry trend where automakers pass on some operational costs to customers to maintain their financial stability.
Market response
Potential impact on luxury car market
The timing of Audi's price hike in early 2025 could also play a role in consumer behavior.
Some buyers may opt to make their purchases this month to avoid the increased prices, potentially boosting short-term sales.
However, once the price adjustment takes effect, it could impact demand in India's luxury car segment which has been showing signs of recovery lately.