India’s Union Budget 2018-19 that has favoured the agricultural sector and ‘Make in India’, hasn’t favoured the luxury vehicles industry. Luxury vehicles have become more expensive with higher import duties.
Luxury companies are of opinion that with the implementation of the Budget and new duty rates, prices may jump by USD $1,560- 15,600 (Rs 1-10 lakhs).
However, deals at pre-Budget prices are available for existing stocks at dealerships. Car companies like Mercedes-Benz and Audi have already started offering ‘pre-Budget deals’ to their potential buyers. Increased prices are expected to be announced over the next few weeks, after companies clear inventories and fresh imports arrive or get assembled.
A soar in prices will be expectedly announced in the next couple of weeks when luxury car manufacturers clear their existing stock and new stock of cars and parts arrive.
Silver Arrows, one of the dealers for Mercedes-Benz in Delhi-NCR, has approached its probable buyers saying: “Hurry and buy your favourite car at pre-Budget prices, till stocks last. Prices will likely increase by 5%.”
A senior functionary with Mercedes said, “This is the right time to buy, as prices are yet to change. We are also doing aggressive follow-ups with customers.”
Mikey Todd, one of the top dealers for Audi in India, said that there are chances that the price of the brand may raise by 3-4 percent in the new stock. He also added: “It depends on model-to-model, but this is the kind of inventory that we hold.”
“People are still absorbing the fact that prices are going up. In any case, there have been quite a few instances of unexpected rush this fiscal, especially due to duty and price changes at the time of GST rollout. That rush is missing.”