“At Audi India, we strive to offer the best to our customers, but the rise in customs duties and input costs has forced us to adjust our prices upwards,” Audi India Head Balbir Singh Dhillon said in a statement.
While the company has tried to cushion the impact at various levels, the current situation necessitates a price increase, he added.
An increase in customs duties and import costs means that the car company has to pay more to import or buy the necessary materials, components and parts needed to manufacture the cars. As a result, the production costs of the cars rise and the car company may have to pass on the extra costs to customers by raising the prices of their products. This can affect the sales and profitability of the car company as well as the demand for their cars in the market.
Audi is also one of many automakers to raise prices for its models. Mercedes-Benz India has already increased its vehicle prices from April 1, ranging from ₹2 lakh to ₹12 lakh for various models, to offset rising input costs, especially the negative impact of exchange rate fluctuations.
With input from PTI.
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