German luxury car manufacturer, Audi, have announced that there will be a price increase for all its products in India. The increase, ranging from three to five per cent, will be effective from January 1, 2014.
The market conditions are primarily to blame. Not seeing much growth in the Indian auto market and pitted against competition and other challenges, companies like Audi and its rival BMW have now sought recourse to price hikes to maintain their company’s growth.
Audi closed yet another record month in India with a sale of 1,002 units in October 2013, a growth of 17.8 per cent from October 2012 where it sold 850 cars. Sales for the period January – October 2013 stood at 8,393 units, a growth of 15.4 per cent as compared to January – October 2012, where the sales stood at 7,267 units. The results have been instrumental in driving the company’s strategies.
Joe King, Audi India head, said, “While Audi has exhibited strong sales performance in 2013, the overall market scenario has remained challenging. Various economic factors have put pressure on our business model and resulted in the necessity to increase our prices. Continuing our focus on the customer, we have ensured that the impact is as minimal as possible. Additionally, we are offering the customers customised and innovative finance options from Audi Finance which will make their purchase more attractive.
As part of keeping the customer in focus, Audi India has plans to expand its network to 34 dealerships from its existing 30 centres, by the end of 2013. The company has also opened new showrooms in Mumbai South, Lucknow, Bhubaneswar, Delhi Central, Karnal and Vadodara earlier this year.