Audi India to ramp up local production

Audi’s Indian product portfolio includes 8 models, out of which only two are manufactured locally.

Audi plans to ramp up manufacturing in India to make their cars more affordable.

According to Balbir Singh Dhillon, Head of Audi India, most of the cars that will be sold in India will be made locally. The company aims to achieve 80-85% localization. The move will help reduce the prices as the company will have to pay less duties.

Audi’s Indian product portfolio includes 8 models, out of which only two are manufactured locally. That’s the A4 and A6. Models like the Q2, Q8, RSQ8, RS 7 Sportback, S5 Sportback and A8L are imported as completely built units (CBU).

Being direct imports, these models attract high import duties. Compared to international prices, these cars are offered at more than double the price in India.

The luxury segment accounts for a mere 1% of the overall market in India. Carmakers blame heavy import duties for suppressing demand. Dhillon believes that there is huge potential for growth and if duties are lifted, the volumes would grow exponentially. 

Source: Business Line