Audi considering local car manufacturing in India

Audi India assembles four car models in India, the A4, A6, Q5 and Q7, through the completely knocked down (CKD) route. Soon, the Q3 crossover will join the CKD brigade. The CKD assembly happens at Audi India's Aurangabad assembly unit. Audi, going by its sales performance, is expected to sell over 10,000 luxury cars in India during 2013. The German luxury car maker, according to TheEconomicTimes, is said to be considering full fledged local manufacture of specific high volume cars, in India. 

Cars such as the Q3 crossover and the upcoming 2014 A3 sedan (based on the MQB platform) are speculated to be the top contenders for local manufacturing. Notably, the Volkswagen group's MQB platform could be the big idea around which Audi India's local manufacturing plans are centered around. The Audi A3 sedan, scheduled to hit Indian roads by 2014, is based on the MQB platform, which will be shared by other Volkswagen group cars such as the upcoming 2013 Octavia, and the next generation models of Polo and Vento. 

Since the MQB platform will allow car makers in the Volkswagen group to share parts and production facilities, Audi is said to be conducting a feasibility study to build the A3 sedan at Volkswagen India's Chakan factory. The Chakan facility produces big volume, mass market cars such as the Polo and the Vento. For now, the German luxury car maker is playing down its possible local manufacturing plans, what with Audi India MD Mr Michael Perschke making this statement, 

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.

Audi India is said to require volumes of 10,000 units/year from a single luxury car to justify the investment required for that car's local manufacture. Given the fact that Audi's current volumes with all its luxury cars put together is expected to nudge the 10,000 unit/year mark, local manufacture could be a good half decade away.