The Hindu Business Line : Audi looks at assembling Q5 SUV in India

“We are testing the possibility of assembling the car in India. If that were to happen, it will be the third Audi model to be assembled here after the A4 and A6,” a top company source said.

Till that happens, the car will follow the direct import route which means coughing up over 100 per cent duty in its cost structure. It was launched here on Thursday with its price ranging from Rs 38.29 lakh to Rs 44.19 lakh (ex-showroom Mumbai).

The company has targeted sales of 100 units this year, going up to 400-500 in 2010.

Local assembly can only be contemplated with reasonable volumes to make it a viable option. It also remains to be seen if the price of the Q5 will be reduced in the process since Audi would also want to ensure that there is some return on investment made in setting up a local assembly line.

Sources say that this works out to roughly €10 million a model going by what it has invested for the A4 and A6 lines at group company, Skoda’s plant in Aurangabad.

Audi has targeted investments of € 30 million by 2015 for setting up additional production lines. The plant has an installed capacity of 3,000 units for its range of cars.

Between the A4 and A6, the company expects to sell around 1,000 units this calendar and at least another 500 units of its five completely built imported models comprising the TT, R8, Q7 (which could also be assembled at a later date), A8 and the Q5.

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