Companies

Audi bets on product launches to clock high double-digit sales growth in 2021

Nandana James Mumbai. January 6 | Updated on January 06, 2021 Published on January 06, 2021

Audi currently only has two models that are produced locally, some of the new products that are slated to be launched this year will be locally assembled

German luxury car maker Audi is betting on a strong product strategy in 2021 with plans to launch products in all the segments it operates in to clock a high double-digit growth in sales this year, a top company official said. This is even as sales in the luxury car market is estimated to have declined by 40 per cent in 2020.

While the company currently only has two models that are produced locally, some of the new products that are slated to be launched this year will be locally assembled.

“There are two factors on the basis of which we want to grow by double-digit - internal as well as external. The internal factor is the new product pipeline that we have for this year. So that’s our internal strategy. The number of products that we’re going to have this year will definitely give us a big blip, (which is) positive. On the external side, very recently, the honourable Finance Minister made certain statements, saying that the budget will be unprecedented. And so far, the government has been focussing on supply side boosting and with this budget, they will also focus on the demand side,” Balbir Singh Dhillon, Head, Audi India, told reporters on Tuesday, on the sidelines of the launch of the new Audi A4 sedan in India, at a starting price of ₹42,34,000 (ex-showroom).

Also read: Audi drives in A4 at ₹42,34,000

Once the focus comes to the demand side, that will also generate a positive demand in the market, Dhillon added.

Demand

The highest number of cars that Audi India sold last year was in the month of December, he pointed out. “I am sure this demand will continue this year as well, partially on the base of low volumes of last year. But also for us specifically, since we are going to have many product launches, that will also give us a push for good sales,” he said

Without divulging the number of product launches slated for this year, Dhillon said that the launches will cover all the segments Audi India is present in, and would include ICE vehicles, electrified vehicles - including an all-electric car - volume products, sedans, SUVs and niche cars.

Sustainable business model

The company is also looking at building a sustainable business model in India, by focusing on increasing the revenues and keeping the costs in check. “The more we sell, the more revenues come, and the more we expand our portfolio - whatever earning verticals that we can create apart from just selling cars. So those are the verticals that give us profits. And at the same time, we are also looking at costs. What 2020 has taught us is where we can improve on costs. So (we are looking at) how we can spend less or how we can optimise our resources that are available.”

Audi India also plans to come up with its workshops in new areas, apart from an expansion of its pre-owned car business, Audi Approved Plus. Currently, seven showrooms of Audi India have its pre-owned business. The company intends to have all its dealerships offer its pre-owned car business this year.

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Published on January 06, 2021
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