Audi, BMW hike prices by 3-5 per cent from 1 January

Luxury car manufacturers Audi India and BMW Group India have hiked prices across models, effective 1 January, a move that could be followed up by others.

Audi has hiked prices across models in India by 3-5 per cent, while BMW Group India also decided to hike prices by 7-10 per cent, the companies said in separate statements.

''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,'' said Joe King, Head, Audi India.

''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,'' he added.

Audi had sold 1002 units in October, a 17.8 per cent rise from 850 cars sold during the same month a year ago. Sales for the year (January–October 2013) stood at 8,393 units, a 15.4 percent rise from 7,267 units sold during the same period of last year.

Audi India also plans to expand its dealerships network to 34 by the end of 2013 from its existing 30.

The Audi model range in India includes A4, A6, A7 Sportback, A8L, Q3, Q3 S Edition, Q5, Q7, S4, S6, RS 5 Coupé, TT Coupé, the super sports car R8, R8 Spyder and R8 V10 plus.

On Wednesday, the BMW Group India also announced plans to hike prices by 7-10 per cent, effective 1 January.

The price hikes would be across BMW and Mini product range, it said in a statement.

''At BMW Group, we believe that both profitability and growth are essential for a win-win situation at the end. We are making price decisions with all due care and consideration ensuring that they pay off in the long run,'' said Philipp von Sahr, President, BMW Group India.

BMW Financial Services India and Mini Financial Services India will offer a range of financing solutions. BMW Financial Services India and Mini Financial Services India will also offer Lease for individuals and corporate customers along with insurance solutions through their cooperation partner in India.

The BMW 1 Series, the BMW 3 Series, the BMW 5 Series, the BMW 7 Series, the BMW X1 and the BMW X3 are locally produced at the BMW Plant Chennai.

The BMW 6 Series Coupe, the BMW 6 Series Convertible, the BMW 6 Series Gran Coupe, the BMW X5, the BMW X6 and the BMW Z4 are available in the country as Completely Built-up Units. The BMW M5, the BMW M6 Coupe, the BMW M6 Convertible, the BMW 6 Series Individual and the BMW 7 Series ndividual can also be ordered as Completely Built-up Units.

The Mini Countryman is locally manufactured at the BMW Plant Chennai. The Mini Hatch and the Mini Convertible are imported in India as Completely Built-up Units.

BMW India, which 37 sales outlets in India, is to increase it to 50 by the end of 2014.