German luxury car maker Audi today reported 29 per cent growth in sales in India during February at 775 units as against 600 units in the same month last year.

Leading the growth in India are the company's sports utility vehicle range, including the Q3, Q5 and Q7, Audi India said in a statement.

"The year has started on a positive note for us with successful launches of the new Audi Q5 and the new Audi R8 in January. We introduced the petrol variant of the hugely popular Audi Q3 in February. Our popular SUV models are enabling us to continue on our growth story," Audi India Head Michael Perschke said.

He, however, said the recent announcements in Budget may dampen the spirit of customers.

"Increase in imported cars and excise duty on SUVs was very surprising. We will have to seriously evaluate the impact of this hike on our prices and, have no choice other than to pass on to customers," Perschke added.