German automaker Audi will start production of its model Q5 at its Aurangabad plant in Maharashtra by mid-2010. The plant currently assembles Audi A4 and A6 at this plant and intends to produce 500 units of Q5 initially. Audi Q5 is a soft-roader that is capable of doing tasks as good as Q7 but comes in a more manageable package. The car is being imported as CKD units which will be assembled locally to bring down the costs. Completely built units in India attract 100 percent duty making the car extremely costly and not available for even upper middle class.

“The completely knocked down (CKD) production site in Aurangabad is based on an extremely flexible concept that means it can ‘breathe’ and can be adapted to new market requirements. The start of production for an additional model is related to the volume and possible anytime. We will start assembling our SUV Q5 in India by mid-2010,” said Benoit Tiers, Audi India Managing Director.

Luxury car makers are gearing up to capture more of the market by manufacturing the popular models here to bring down costs. The Audi Q5 is priced at Rs 38 lakh for a base model. The company did not want to comment on what could be the price for the CKD model.