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Tuesday, 15 July 2008

Audi, German luxury car brand, plans to absorb import taxes on its newly launched A4 sedan to India instead of transferring the cost of import to the consumer. The only reason to absorb taxes is to maintain the announced price tag of the new Audi A4 before its launch.

Volkswagen Audi is planning to start local operation for A4 at its Aurangabad facility by the end of this year. Till then, Audi is not willing to have a price difference just because of the import duty levied on the A4 for the next few months. After local production starts, the company will save on import taxes to bring down the cost price of the car.

This will make the car affordable to most Indian buyers. The company announces Audi A4 to be the cheapest Audi car in the country, costing Rs. 29 Lakh (ex-showroom Mumbai) for the diesel version. The expected sales target for A4 is about 300-400 units this calendar year.

Audi is also committed to locally manufacturing its other luxury cars like the A6, A8, TT Coupe and Q7 by the next fiscal year.

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3 Comments:

At 16 July 2008 17:03 , Anonymous Dimisha said...

By absorbing the import taxes, I think that the company is luring customers. As it is there is no point in having a huge price difference between the launch and local production of the car. I know that the company will face some losses by absorbing these taxes but on the long run it will gain massive business benefits. Consistency is something that is always admired and appreciated by car consumers.

 
At 16 July 2008 18:36 , Anonymous Anonymous said...

So these are the ways were car makers create enthusiasm among the buyers. They have just kept there words but many of the car makers dont do this. They say something and do something else. The price also sounds pretty cheap this is really good from Audi's side. Hope to see more and more cars from Audi soon.

 
At 17 July 2008 09:30 , Anonymous Anamika said...

1. I am a fan loving for Audi cars. They look awesome and sporty. I liked the picture that is there in this blog. Pretty good. This is what many of the car makers lack in they don’t keep up there words. But Audi has kept up its promise and has not increased its price in the launch. The car manufacturer itself is bearing the taxes on imported cars and the price range also seems to be less when compared to other Audi cars. So maybe there can be good sales as this is one of the cheapest cars of Audi.

 

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