With rising input costs and fluctuations in forex, luxury cars could see another vehicle price hike in the Indian automobile industry.
Luxury carmakers in the country recently undertook a price hike after the increase in import duties of 70 per cent in taxation up from 60 per cent on vehicles brought to the country as completely built units which were announced in the Union Budget.
“We might have to take another price increase as we go ahead in a couple of months. We took a price increase in January and on some models from May 1 after the changes in the Budget,” said Balbir Singh Dhillon, Head of Audi India.
The German manufacturer a part of the Volkswagen Group, registered a revenue climb of 18.2 per cent to €16,883 (Q1 2022: 14,282) million with the all-electric Audi Q4 e-tron and Audi e-tron GT quattro1 as well as the Audi Q5 and Audi Q7 being the main contributors to the increase.
Mercedes-Benz, another German luxury carmaker, has undertaken two vehicle price hikes this year in January and in April in India.
Buoyant demand
Despite the price increase, the demand for luxury cars in the Indian automobile industry continues to remain buoyant, according to ICRA.
“By the end of June, we will evaluate the possibility of a hike and will try to minimise the impact on our discerning guests and continue to provide value to our guests through the Lexus Life programme – a gateway to amazing experiences during the guest’s ownership period,” said Naveen Soni, President, Lexus India.