About Audi AG

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Audi AG, based in Germany, is one of the leading luxury car manufacturers of the world. Audi, owned largely by the Volkswagen Group, made its foray into the Indian automobile
market in 2007. On 1 September, 2013, Mr. Joe King replaced Mr. Michael Perschke, the head of Audi AG's Indian operations. Under Perschke's leadership, Audi grew by leaps and bounds- going from selling some 3,003 cars in 2010 to taking on the market leadership by selling 9,003 cars in 2012. India is now the second Asian market after China where Audi has gained the No. 1 position in the luxury/imported car segment, leaving behind its rivals like BMW and Mercedes Benz.

Production Facilities of Audi in India

In India, Audi uses the Škoda Auto India Private Limited (SAIPL) plant in Aurangabad, Maharashtra, to assemble a large number of luxury cars including the Audi A4, the Audi A6, the Audi Q5 and the Audi Q7 models. Apart from these models, there are some models that are fully assembled for the Indian markets by the company outside India. These models include – Audi A8L, Audi Q3, Audi TT, Audi RS5 and Audi R8. The parts of the vehicles assembled at the Aurangabad plant are originally manufactured at the Ingolstadt and Neckarsulm production facilities in Germany, from where they are transported through freight rails to Hamburg and Bremerhaven and then send to Mumbai via sea route before being transported to the assembly unit by road.

Map showing Audi plants in India

Map showing Audi plants in India
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Audi Dealership Model in India

Audi India boasts of an extensive network of over 35 dealers in about 32 major cities of India. Each dealer showroom is backed by a workshop in the same city that provides servicing facilities for the Audi car owners. The luxury car brand has various outlets in large cities such as Delhi, Mumbai and Kolkata. Audi India added its newest dealership in North-East India with a showroom in Guwahati. In 2010, Audi claimed that its Gurgaon dealer brought in the most business (about 400 cars per year); however, a fair number of dealers have been attempting to join the race, given the booming market for luxury cars in the country.

Sales Outlook for Audi India

Ever since Audi entered the Indian market in 2007, the German carmaker has found a fortuitous growth in the demand for its various models. For the past two years, Audi has remained the largest luxury car brand in the country. Audi India recorded the sale of about 10,851 units in 2014. It has been achieving a year-over-year increase of about 8 percent. Audi India has also succeeded in capturing a market share of about 34 percent in the luxury car segment. However, if Audi India Head Joe King is to be believed, the Indian adventure has just begun. The carmaker intends to sell about 2,500-3,000 units this year in the Eastern Region alone. The Eastern Region comprising Bihar, Jharkhand, Odisha, West Bengal and the North-Eastern states, which traditionally record the lowest auto sales for any carmaker in India. Given this outlook, Audi India seems to have set itself a high aim.

Imported/Luxury Cars Market in India

The market for luxury/imported cars in India has been steadily growing. The focus has now turned from Metropolitan cities to Tier II and Tier III cities. Cities such as Ludhiana and Coimbatore have shown a stupendous appetite for racy global brands in a show of money and class. The younger generations of Indians have shown a distinct preference for coupes, sedans, sports cards and SUVs over the traditional family cars. Audi AG does, however, face serious competition in this space. The other German automobile giant, Mercedes-Benz India, a wholly owned subsidiary of Daimler AG, is its biggest competitor. Mercedes-Benz entered the Indian automobile space in 1994 and has been keen on capturing the hearts of the middle-class by coming up with compact cars apart from looking at the luxury car segment. In fact, according to recent reports, between January and March 2015, Mercedes-Benz has sold more luxury cars (3,566 units) than Audi (3,181 units), threatening the latter's claim to be on the top spot. The third spot is claimed by BMW India, a subsidiary of the German-based BMW Group. The year 2015 promises to be an important year for the segment with Land Rover’s stepping up with its luxury SUV ad campaign and other manufacturers’ eyeing to capture some market share as well.

Last Updated on May 26, 2015