Audi India has become the latest automobile manufacturer to increase the price across models amidst global headwinds. Citing an increase in customs duty and input costs, the German luxury automobile manufacturer has proposed to hike the price of its Audi Q3 and Audi Q3 Sportback by up to 1.6% with effect from May 1, 2023. The car manufacturer has also hiked prices of the Audi Q8 Celebration, Audi RS5 and Audi S5 by up to 2.4% with effect from May 1.

"At Audi India, we strive to give our customers the best, but the rise in customs duty and input costs have compelled us to amend our prices upwards. While we have tried to absorb the impact at various levels, the current situation necessitates an increase in price," says Balbir Singh Dhillon. Head of Audi India.

This is the second time in four months the German automobile manufacturer has announced a price hike owing to higher input costs. In January this year, Audi India hiked the price by 1.7% across its entire model range. In September last year, Audi announced a price hike citing similar reasons. Audi India’s current line-up includes the petrol-powered Audi A4, Audi A6, Audi A8 L, Audi Q3, Audi Q5, Audi Q7, Audi Q8, Audi S5 Sportback, Audi RS 5 Sportback, Audi RS 5 Sportback and Audi RSQ8. The company has Audi e-tron 50, Audi e-tron 55, Audi e-tron Sportback 55, Audi e-tron GT and Audi RS e-tron GT in its electric vehicles portfolio.

The development comes following a price hike by its peer Mercedes Benz India with effect from April 1. Mercedes Benz has hiked the ex-showroom price by 5% across its models. With this, the price of Mercedes Benz cars has been revised by ₹2 lakhs for an A-Class limousine and GLA SUV. For a top-end S 350d limousine, the price has been revised by ₹7 lakhs whereas, for the top-end Mercedes Maybach S580, it has been hiked by ₹12 lakhs.

Meanwhile, Maruti Suzuki, the country’s largest car manufacturer and Tata Motors have also hiked the price across their models by 1.3% and 5%, respectively, with effect from April 1. The automobile manufacturers have cited overall inflation and regulatory requirements related to Bharat Stage 6 regulations. The government has mandated every passenger vehicle to fit an onboard diagnostics device called OBD-2, which will monitor the emission levels in real-time.

In November last year, the Federation of Automobile Dealers Association (FADA), flagged the OBD-2 norms—which are part of the BSVI Stage II regulations—as a potential headwind that could affect demand. "Most of the OEMs (original equipment manufacturers) will now start migrating towards manufacturing OBD-2 norms vehicles. This will definitely see a steep price increase across all categories of vehicles as and when they hit the market. Also with year-end coming close, many customers wait for vehicles manufactured in the new year. FADA hence remains cautious as the auto industry approaches the year-end period," FADA said.

Audi Q3 Sportback Price hike

Audi India to hike prices across SUV, sedan models; check details