Audi to expand dealers’ network, introduce 4 new models in India

Article by Christian Andrei, on February 8, 2012

Audi will introduce four new vehicle models and will also widen its dealers' network this year in India, as it seeks to boost sales and market share in the luxury car segment of the third biggest economy in Asia. The automaker currently sells nine models in the country, and one of these is the R8 Spyder sportscar. Its new models this year include the TT roadster next month, the Q3 SUV in the second quarter and the S6 and A4 models near the end of the year, a spokesperson told Automotive News Europe.

 The automaker's parent company Volkswagen Group also intends to double its component sourcing from the country to 700 million euros or $924 million this year, Audi India operations chief Michael Perschke disclosed. He added that in the long run, their expectations are to boost their global sourcing out of India. He further stated that in terms of cost-competitiveness, the country has a "strategic advantage."

VW sources a range of components from India including crankshafts for vehicle models across Volkswagen, Skoda and Audi. Audi competes with Mercedes-Benz and BMW in the luxury vehicle market of India. The brand intends to add 10 dealers this year to its current network of 15, Perschke mentioned. The carmaker sold just more than 5,500 units in India last year, and aims for sales of 8,000 vehicles in the current year, in line with luxury vehicle sales growth of about 50 percent in the country.

Ford, Renault, Nissan and other international vehicle manufacturers are stepping up sourcing of components from India. They are also investing more in new facilities for cost-effective manufacturing. Swedish truck manufacturer Scania AB, which also belongs to the Volkswagen Group, disclosed last month that it would invest around $30 million in an assembly facility in southern India, as it eyes increasing growth in large commercial vehicle sales in the country.

Topics: audi, india

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