German luxury car maker Audi on Monday said it is offering a limited period customer benefit scheme, including discounts of up to Rs 10 lakh on select models in India, to overcome the challenges in the market – especially post import duty hike.

The company said its discounts will range from Rs 2.7 lakh to Rs 10 lakh on its popular models A3, A4 and A6 sedans along with SUV Q3 till June.

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“We feel that stricter import duties and unfavourable taxes should not be the reason why an aspiring customer cannot afford his dream car,” Audi India Head Rahil Ansari said.

In the Budget for 2018-19, Finance Minister Arun Jaitley had increased the customs duty on CKD (completely knocked down) imports of motor vehicles, motor cars, motor cycles from 10 per cent to 15 per cent.

The government had also raised customs duty on specified parts/accessories of motor vehicles, motor cars, motor cycles from 7.5 per cent to 15 per cent.

Subsequently, luxury car makers have passed on the increase in duties to customers from through price hikes ranging from Rs 1 lakh to Rs 10 lakh.

“Earlier we were expecting double digit sales growth for 2018 but after the hike in customs duty in the Union Budget which has resulted in increased prices, sales will be flat this year,” Ansari said.

Audi India had sold 7,876 units in 2017, up 2 per cent from 7,720 units in 2016.

Ansari said that in May and June sales usually slow down due to holiday and based on last year’s experience (when sales picked up after luxury car makers offered huge discounts in the run-up to GST implementation), Audi India is undertaking a similar exercise this year.

He said under the scheme, the company is offering customers of select Audi model to buy in 2018 and start paying in 2019.

“What we are doing is a part of the strategy to overcome challenges that we are facing in the market,” Ansari added.

Customers can avail a buyback assurance of 57 per cent through finance solution programme Audi Choice on select models, the company added.