Audi to increase investment in India, ramp up manufacturing

Audi is gearing up to announce a fresh investment in India. This investment will be used to enhance its manufacturing set-up in the country. The company has not disclosed the amount it plans to invest.

In 2013, Audi overtook BMW to become the most popular luxury car brand in India. It also became the first luxury carmaker to sell more than 10,000 units (10,002) in a calendar year. In 2014, with sales of 10,851 units, the company retained the first position. However, arch rival Mercedes-Benz, with sales of 10,201 units, had closed the gap significantly. In the first half of 2015, Mercedes-Benz had sold 6,659 units, reflecting a growth of 41%, and taken the lead. Audi still believes it can finish ahead of Mercedes-Benz at the end of the year. The company expects to retain the 34% market share that it achieved in 2014.

The luxury car market accounts for just 1% of the overall passenger car market. Last year, the total number of luxury cars sold stood at around 33,000 units. With the increase in disposable income and easier finance schemes, this share is expected to go up.

Audi cars are assembled at the Skoda factory in Aurangabad. The company can produce 14,000 units on an annual basis, working on a single shift. Audi has invested around 30 million euros (Rs. 220 crore) till now.

Source: Times of India