Audi has announced a price hike in India that will come into effect from the beginning of the next financial year. The company will increase prices of its vehicles ranging from INR 1 lakh to INR 9 lakh on 1 April, 2018.
The latest price hike is the effect of the government making CKD imports more expensive. For FY2018-19, the government has announced an increase in the hike of customs duty levied on CKD imports of passenger vehicles from 10% to 15%. The customs duty levied on specified parts/accessories of passenger vehicles is also set to go up next fiscal, from 7.5%/10% to 15%. Audi has decided to increase prices of its entire line-up in the country by up to 4%.
Commenting on the price hike, Audi India Head Rahil Ansari said, “The increase in customs duty and introduction of social welfare surcharge in lieu of an education cess (which is higher than the erstwhile cess) in the Union Budget made the increase in price inevitable.” The company has tried to absorb the customs duty hike’s impact and has minimised the price hike.
Rightly suggesting a lower customs duty for more tax earnings to the government, Mr. Ansari said, “There is no doubt that increase in car sales would definitely help the government in garnering more accumulated taxes.”