The German luxury car maker, Audi said that the company will increase production capacity of its Aurangabad unit by 50 per cent, bringing the total to 9000 units. Talking about this decision, Michael Perschke, Head, Audi India, quoted “We are building a new assembly hall, which is called hall C, which would contribute to production of another 3,000 cars.”
In the initial stage, the Aurangabad plant was designed with only one assembly line which produced three models, namely Audi A4, A6 and Q5. Per shift capacity of this facility was 3,000 units, which has been now grown twofold to 6,000 units with two shifts.
Mentioning the company’s plans to expand investment in its manufacturing unit, Perschke once said that the investment of € 30 million made during initial stages is completely used, it will formulate an investment plan for India. He added, “When we started our business five years ago, the investment was calculated at around 30 million euros. Of this, 20 million euro we have consumed till last year. Probably the investment we are doing now, we would have consumed the 30-million investment by this year. I am also hopeful that my board will approve a new investment as and when needed.”
Audi, the 100 per cent owned subsidiary of Volkswagen Group, introduced a revamped version of its bestseller A4, a premium sedan, in the Indian auto industry. The car is offered with both petrol as well as diesel engines with a price tag of Rs. 27.33 lacs. With the launch of facelifted A4, the company anticipates that the model will account for a substantial share of the 8,000 units it expects to sell this year. Presently, Audi A4 accounts for 43 per cent of sales figures of the company in the country. Speaking about sales, Perschke further added, “Our annual sales volume for this year is 8,000 units. We are looking at a minimum of 2,500 A4s to be sold this year, both the old and the new versions.”
During the first four months of 2012, the company registered sales of 2,831 units, as against 1,986 vehicles in the corresponding period in 2011. The product portfolio of Audi in India includes A4, A6, A7 Sportback, A8L, Q5, Q7, RS5 Coupe, TT, R8 super sports car and R8 Spyder. Apart from these, the company has planned to launch a minimum of five to six new models, including the S6, in India. Perschke said, “We plan to roll out five to six models, including the S6, which is expected to hit the market around the festive season.”
In order to attain their targeted sales, the company has also planned to increase their authorised dealer network to 25 from the current 18 outlets. Talking about the luxury car market, Perschke said that he does not expect the segment to increase much and anticipates growth rate of 20 per cent only.
