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Audi likely to start producing its luxury models in India to revamp sales

Audi likely to start producing its luxury models in India to revamp sales
CarTrade Editorial Team CarTrade Editorial Team Tuesday 09 July 2013, 11:47 AM

Audi, the German premium car maker, is planning to start the production of its few luxury models in the Indian auto market, instead of assembling them in the country. Industry experts are of a view that this move reflects the confidence of Volkswagen-owned car maker in the Indian auto market. Sources close to the development process revealed that Audi India is considering to start the production at its parent company's Chakan plant in Maharashtra.

It must be noted that which models will be produced in the country is not confirmed as now. However, auto analysts believe that the brand with four rings will consider manufacturing recently launched A3 compact car and the Q3 compact Sports Utility Vehicle (SUV). Expressing his views on the development, the Head of Audi India, Micheal Perschke told ET, “The current volumes that we have on the current models do not justify a full-blown production, however, the group is looking at different business models. We do a certain level of purchasing together with our affiliates in Chakan. Our board is trying to look at what kind of game plan we should have in the next 5-10 years.”

Auto experts believe that around 30,000 to 33,000 luxury models are delivered in the domestic market in a year and thus, the base is too week for producing these models in the Indian territory. In order to make this dream come true, premium car makers will need to transform India into their manufacturing hub for one model and ship it to other parts of the world. According to them, this step will do justice with the cost employed in the manufacturing of a specific model.

It must be noted that in the current scenario, Audi India happens to be the largest luxury car manufacturer in the country as it assembles sedans like A4, A6, A8 and utility vehicles like Q5 and Q7. Soon, the auto maker is planning to commence the assembly of Q3 at its Aurangabad unit.

 

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