"At Audi India, we strive to give our customers the best, but the rise in customs duty and input costs have compelled us to amend our prices upwards," Audi India Head Balbir Singh Dhillon said in a statement.
While the company has tried to absorb the impact at various levels, the current situation necessitates a price increase, he added.
An increase in customs duty and input costs means that the car company must pay more to import or purchase the necessary materials, components, and parts required to manufacture the cars. As a result, the production cost of the cars increases, and the car company may have to pass on the additional expenses to customers by raising the prices of their products. This could affect the car company's sales and profitability and the demand for their cars in the market.
Also, Audi is one of many car makers to hike prices for its models. Mercedes-Benz India has already increased its vehicle prices ranging from ₹2 lakh to ₹12 lakh across different models from April 1, to offset rising input costs, especially the adverse impact of foreign exchange movements.
With inputs from PTI.
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