Luxury car maker Audi India is understood to have finalised an increase in prices of its entire range of models, mainly due to falling rupee and rising input costs in the recent months.
According to sources, the company has decided to increase the prices by 1-2 per cent from early next year.“The falling rupee and rising input costs have impacted the firm. The pressure on margins of the volume models have been the most,” a source said. The company will pass on the burden to customers for all its models sold in India, including the imported ones, the source added.
When asked about the margins of the company, Audi India Head Michael Perschke said, “The exchange rate is hurting us. The input costs are also very high. At this situation, nobody can seriously avoid a price hike.”
However, without confirming the development, he said any possible price hike will take place during the first quarter of 2012. The company offers a range of luxury vehicles in India, prices of which vary between Rs 27.69 lakh and Rs 1.50 crore (ex-showroom, Delhi).
Indian auto makers’ margins are under pressure due to the sharp fall of the rupee against the US dollar and high raw material prices in recent months. To mitigate the impact, auto makers such as Mahindra & Mahindra, Renault, Nissan Motor, Hyundai Motor, Ford, General Motors and Toyota Kirloskar have also announced hikes in the prices of their vehicles by up to 3 per cent from January 1.
Mahindra & Mahindra said it will raise the prices of its entire range of vehicles by up to 3 per cent. While Renault India will hike the price of its sports utility vehicle Koleos by Rs 1 lakh from January 1, Nissan Motor India will increase the prices of small car Micra and the petrol version of premium sedan Sunny by up to 2 per cent.
The country’s second-largest car maker Hyundai Motor India will also raise the prices of its vehicles by 1.5-2 per cent from January next year. Ford India said it will raise prices of its entire range of models by 2-3 per cent. Likewise, General Motors India announced that it will raise prices by 1-2 per cent from January, 2012. It will also hike the price of its Beat diesel model by Rs 15,000.
Toyota Kirloskar Motor, too, had announced a price hike of 1.5-3 per cent across models manufactured in India from January 1, 2012. Other car-makers, including Maruti Suzuki India, are also mulling a price hike to offset rising input costs.