- Luxury car price tags are getting thicker as automaker Audi raises the prices of its models for the second time in four months.
- Due to rising input and supply chain costs, Audi will increase its prices again by 2.4%.
- In April, luxury car manufacturers Audi and Mercedes-Benz had increased their prices by 3%.
Luxury car Audi is about to get a tad more expensive as the automaker raises its prices for the second time in four months.
The German luxury car maker announced a price increase of up to 2.4% for its model range in India on Tuesday, effective September 20.
Audi Q7for example increasing to 83.96 lakh from ₹82.49 lakh currently.
The current price hike is geared towards the holiday season, which tends to push up luxury car sales.
“At Audi India, we are committed to a sustainable business model. With increasing input and supply chain costs, we are forced to implement a price increase of up to 2.4% for our model range,” said Balbir Singh Dhillon, Head of Audi India.
The cost of raw materials needed to make cars has
shot up after the war in Ukraine – aluminum is 48% more expensive, palladium 38%, rhodium 35%, platinum 13%, rubber 28% and copper 15% compared to the second half of 2021.
In April, Volkswagen group firm Audi and its rival, Mercedes-Benz India, had raised their prices by 3% due to high input and logistics costs. Luxury car makers are still struggling with rising input costs in India, passing the extra costs on to consumers. The luxury car industry has also had to deal with the aftermath of the pandemic, which has abated
footsteps at the showrooms.
Despite the price increase, Audi’s sales grew a healthy 49% year-on-year for the first six months of the year, thanks to new product launches and demand for its Audi e-tron range, Audi Q5, Audi Q7, Audi A4, Audi A6 and S/RS models.
The German auto giant also said it had sold 1,765 units backed by electric vehicles in the period January – June 2022.
According to market research firm Mordor Intelligence’s
reportthe Indian luxury car market was valued at $1.06 billion in 2021 and is expected to grow to $1.54 billion by 2027, at a CAGR of over 6.4%.
According to Mordor Intelligence, BMW, Audi, Jaguar Land Rover and Volvo had the highest growth rates among luxury car manufacturers in FY21.