Audi India has announced a price increase of up to 3% across its entire range of vehicles effective from 1 January 2025. This adjustment is attributed to escalating input and transportation costs and will affect the ex-showroom prices of all models offered by the carmaker in Indian market. The decision marks yet another example of automotive manufacturers grappling with the financial challenges posed by inflationary pressures and global supply chain disruptions.
In a statement issued by the company, Balbir Singh Dhillon, Head of Audi India, emphasised the necessity of this move for maintaining the brand's financial health and fostering sustainable growth for both Audi India and its dealer network. While recognising the potential burden on consumers, he assured that efforts were being made to mitigate the impact of the hike. However, the increase comes at a time when the luxury automobile market in India is showing signs of recovery and competition among premium brands is intensifying.
The price hike is indicative of a broader industry challenge where rising production costs—largely driven by raw material price increases, currency fluctuations, and elevated transportation expenses—are being passed on to consumers. Despite efforts to absorb some of these costs internally, automakers worldwide are increasingly resorting to price adjustments to maintain profitability. This, in turn, could impact Audi’s sales growth, particularly as competition from brands such as Mercedes-Benz and BMW remains strong. The timing of this increase, close to the New Year, could also influence year-end buying trends with some consumers rushing to make purchases before the higher prices take effect.
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