Audi India sees window of opportunity before new GST cess kicks in

Did German luxury carmaker Audi see the new GST cess coming? Earlier today, the company announced its ‘Unbeatable’ offers on its bestselling cars across India – the A3 and A4 sedans and the Q3 SUV.

The offers include EMIs starting at Rs 24,999, complimentary insurance for the first year, three years’ service plan coupled with an additional two years of extended warranty. Customers get loans at an interest rate of 7.99 percent and an exchange bonus of Rs 100,000.

“This is the best time to get your favourite Audi at an unbeatable offer. We are celebrating the completion of 10 years of Audi in India this year and invite all Audi enthusiasts to celebrate the ‘Unbeatable’ offers with us. Our best-selling cars are available now with benefits rarely seen before,” said Rahil Ansari, Head, Audi India (pictured below).

Commenting on the new GST cess, Ansari said: “The luxury car industry in India, while small in volumes, still contributes over 10 percent in value. The taxes on this industry were already very high and we expected the unfulfilled potential of this segment to increase after the implementation of GST and rationalisation of taxes. However, the proposal of further increasing the cess on the luxury car industry will dampen the spirits of not only the companies, dealers and customers but also workers and employees working in this industry. This proposed increase in cess will most definitely adversely impact the sales. We will be forced to re-evaluate our business plans in light of this development. This move unfortunately is against the spirit of liberal market dynamics and we can only request to reconsider this proposal."

"Keeping in mind the proposed increase in cess, we have introduced ‘Unbeatable’ offers on our best-selling cars. This is an opportune time to join the Audi family and additionally also benefit from the privileges of the Audi Club India. Customer Delight is at the centre of Audi's focus and we are sure that the current offers will delight the Audi enthusiasts," concluded Ansari.