New Delhi, March 16: German luxury car maker Audi today said it will increase prices of its vehicles by up to Rs 9 lakh from April 1 to pass on the impact of increased customs duty in the Budget. The price across the entire model range will be increased by up to 4 percent owing to the hike in the customs duty announced in the Union Budget, Audi India said in a statement.

The price increase will range from Rs 1 lakh to Rs 9 lakh and will be effective from 1st April 2018, it added. Audi sells a host of vehicles in India ranging from SUV Q3 with price starting at Rs 35.35 lakh to sports car R8 which is tagged at Rs 2.63 crore. Audi India Head Rahil Ansari said, "The increase in customs duty and the introduction of social welfare surcharge in lieu of an education cess (which is higher than the erstwhile cess) in the Union Budget made the increase in price inevitable."

The company has tried to absorb the impact of the increase in customs duty and has minimised the price hike, he added. Seeking support from the government for the luxury car industry, Ansari said,"There is no doubt that increase in car sales would definitely help the government in garnering more accumulated taxes."

In the Budget for 2018-19, finance minister Arun Jaitley had increased customs duty on CKD (completely knocked down) imports of motor vehicles, motor cars, motorcycles from 10 percent to 15 percent. The government had also raised customs duty on specified parts/accessories of motor vehicles, motor cars, motorcycles from 7.5 percent to 15 percent.