German luxury carmaker Audi, which launched RS 5 Coupe on Tuesday, said it will soon increase prices of its models by up to 3 per cent to protect its margins in view of steep fall in the rupee.
“We will increase prices by 2-3 per cent. We have no option but to pass on some costs to customers. The price hike may take place between July and August,” Audi India head Michael Perschke told reporters.
The Audi RS 5 Coupe is priced at Rs. 95.28 lakh (ex—showroom Mumbai).
Mr. Perschke said the rupee has seen a sharp fall in the last couple of weeks and this has affected the margins significantly.
Audi had last increased prices in January, he said, adding, “We also did some adjustments in our SUV prices after the budget.”
The government had increased the excise duty on SUVs above 4—meters to 30 per cent from 27 per cent in the budget.
Under the current definition by the Finance Ministry for the taxation purpose, SUVs which are above the 4-metre length, and having an engine of 1500cc or above along with 170mm ground clearance attract excise of 30 per cent as against 27 per cent earlier.
Audi India has continued to maintain its growth momentum in the domestic luxury car market by selling of 4,846 units in the January-June period, posting a growth of 21 per cent over the corresponding period a year ago, he said, adding the company sold 750 units in June, a growth of 4 per cent.
“We are confident of maintaining the sales momentum and meeting our target of selling 10,800 cars this year. So far this year, we have launched six models including the RS 5 Coupe and we aim to roll out another 3 to 4 new models and variants in the remaining part of the year,” he said.
Audi India plans to expand its network to 34 dealerships by 2013 end from its existing 26. It has opened new showrooms in Bhubaneswar, Lucknow and south Mumbai.
Audi sells the A4, A6, A7 Sportback, A8L, Q3, Q5, Q7, S4, the new RS 5 Coupe TT Coupe R8, R8—V10 plus and the R8 Spyder in the country.