Audi says its price increase effective January 1, 2022 will be up to 3% across all its models.
Automotive market leader Maruti Suzuki India along with luxury carmakers Mercedes-Benz and Audi on Thursday said it will raise prices from January to offset input costs and enhance features. get a raise. While Maruti said the price increase plan in January 2022 will be different for different models, Mercedes-Benz India says its increase will be up to 2% for some models due to improvements. features and increased input costs.
On the other hand, Audi says that the price increase effective January 1, 2022 will be up to 3% across the entire model line due to increased input and operating costs. “In the past year, the company’s car prices continued to be adversely affected by increased input costs.
It is therefore imperative for the company to pass on some of the effects of the above additional costs to customers through price increases,” MSI said in a regulatory filing. January 2022 and the gain will vary for different models it has been added
In an exchange with PTI, MSI Senior Managing Director (Marketing and Sales) Shashank Srivastava said that the company was forced to raise prices, with the increase in prices of essential commodities such as steel, aluminum, copper, plastic and precious metals in recent years. a year.
He noted that the automaker has been under pressure since last year but avoids steep price hikes as it will affect the demand scenario in the market. “As we have made great profits and with commodity prices still high, we have no choice but to take corrective actions. This year, we raised prices by a total of 4, 9%, which is actually lower than the impact we are seeing related to high commodity prices,” he noted.
For the company, raising prices is a last resort, as it doesn’t want to burden consumers, said Srivastava. “We thought that commodity prices would come down, but it didn’t. In the end, we reduced costs, increased efficiency, but that wasn’t enough, and in the end, we did.” must raise prices,” he added.
Srivastava says the company is currently calculating the quantum of the spike, which will vary between models. “Given the large increase in commodity prices, the increase will be substantial,” he noted.
The auto group has raised car prices three times this year – 1.4% in January, 1.6% in April and 1.9% in September, bringing the total number of vehicles to 4.9%. The company sells a wide range of models, starting from the Alto hatchback to the S-Cross SUV, with prices ranging from Rs 3.15 lakh to Rs 12.56 lakh (at showroom, Delhi).
Mercedes-Benz notes that to offset the cost of feature enhancements amid rising input costs, it will increase the ex-factory prices of only certain models. The price revision up to 2% will take effect from January 1, 2022, it added.
Similarly, Audi has announced a price increase of up to 3% across its entire lineup, effective January 1 next year, due to increased input and operating costs.
“Audi India’s strategy focuses on a sustainable business model. To offset the increasing input and operating costs, price adjustment is necessary.
Balbir Singh Dhillon, Head of Audi India, said: “The new price range of our selected vehicles will ensure the premium price positioning of the brand, ensuring sustainable growth for both our brands and agency partners.
He added: “Continuing to focus on being customer-centric, the company has ensured that its impact is as small as possible.
