Audi India to establish brand new facility at Aurangabad

Audi, the wholly owned subsidiary of Volkswagen Group, is developing a new manufacturing facility at its cousin Skoda's plant situated in Aurangabad. It has been revealed that the upcoming facility will assemble only Audi vehicles, which will be marketed in the country. The new facility is expected to assist the company in meeting the surging demand for Audi cars in the Indian car market.

The new development from Audi's stable appears to be a well thought manoeuvre by the German auto maker as it will allow the company to spread its wings along the length and breadth of country by increasing its annual yield and reaching more buyers. Further, the demand for its vehicles is expected to continue to grow in the upcoming years.

Currently, Audi India assembles its premium luxury saloons A4 and A6 at the Aurangabad facility. Besides, the company assembles its iconic Sports Utility Vehicle (SUV) Q5 at the same plant and is expecting to achieve an annual yield of 3,000 units from the upcoming facility.

According to the Press Trust of India (PTI), during the annual conference of Society of Indian Automobile Manufacturers (SIAM) held in New Delhi, Michael Perschke, Head, Audi India, said, “We are setting up a dedicated production plant in Aurangabad. It will have a capacity of 3,000 units annually.”

Perschke also revealed that the company's new facility at Aurangabad is nearing its final stages and its construction is expected to be finished by the end of this year. He further informed that Audi India will commence production of two of its cars, once the upcoming facility becomes operational.

Highlighting the company's future plans, Perschke further said, “Will start the assembly of SUV Q7 by the end of this year and will probably start the assembly of Q3 from next year.”

When enquired about Audi India's total expenditure towards the new plant, Perschke said, “We had announced a five year plan of 30 million euro of which 65-70 per cent have already been consumed. The investment in the new plan will come from this.” The Audi India Head refrained from shelling out intimate details but affirmed that the company will disclose its five year investment plan next year.

Reportedly, Audi India manufactures 6,500 vehicles in the country every year, at present. Recently, the company announced that it is endeavouring to reach annual sales of 8,000 vehicles this year and is targeting a 20 per cent surge in sales in 2013.

The upcoming facility will feature world class equipments and assembling operations, which will consolidate Audi's presence in the Indian car market. Accordingly, the new Audi factory will be beneficial for the Indian car enthusiasts as the domestic production of the cars will significantly bring down manufacturing costs, thereby making Audi vehicles easier on the pockets of Indian buyers.