Volkswagen is the latest entrant in the list of automakers who will be increasing the prices of their products from January 2019. The German carmaker has announced that prices will be hiked by up to 3 per cent. The decision has been taken to offset the costs incurred due to three main drivers – the changing dynamics of the economy, rising input costs and the depreciation of the rupee.

Here’s what Steffen Knapp, who is the director at Volkswagen Passengers Cars, said in an official release:

“Over the last few months, we have been facing several fluctuations within the economy particularly the rise in input costs. At Volkswagen, we have tried our best to absorb the increasing costs but in order to maintain quality standards that a Volkswagen customer expects, this is an essential move. A diminutive percentage increase will assist the company in restoring equilibrium for the upcoming months.”

Volkswagen, with Skoda Auto leading the proceedings, will be playing a pivotal role for Volkswagen Group under the India 2.0 project. Last month, the Group announced leadership changes for its plans on our shores. The restructuring will see Gurpratap Singh Boparai, Skoda Auto India’s head honcho, also take the position of managing director at Volkswagen India. Apart from that, Pavel Richter, who is the production technical director of India 2.0 project, will take the responsibilities for production at both of Volkswagen’s India manufacturing facilities.

Volkswagen will be investing one billion euros in about two years. The main aim is to capture a 5 per cent market share, between Skoda and Volkswagen brands, in India by the year 2025. Volkswagen Group’s India 2.0 project will start with four products – two each from Skoda and Volkswagen. The MQB A0 IN platform will underpin all four, and the first two will be compact SUVs.