The increase in prices across model range available in India would range from 3-5 per cent, effective January 1, 2014, the company said in a statement.
Audi India Head Joe King said: "Various economic factors have put pressure on our business model and resulted in the necessity to increase our prices. Continuing our focus on the customer, we have ensured that the impact is as minimal as possible."
He further said the company is offering customers customised and innovative finance options from Audi Finance which will "make their purchase more attractive".
Audi sells a range of models including sedans A4, S4, A6, S6, A8 and SUVS, Q3, Q5 and Q7 and sports cars such as R8, V8 and R8 Spyder, priced between Rs 27.93 lakh and Rs 2.14 crore (ex-showroom Delhi).
The company has been clocking good sales growth in a tough market, posting 15.4 per cent in the JanuaryOctober 2013 period at 8,393 units, up from 7,267 units in the same period a year ago.
Earlier this week, rival BMW had also announced that it would increase prices of its vehicles in India by up to 10 per cent from January 2014 as part of its sustainable and profitable growth strategy.