Audi eyes ‘volume drivers' strategy to overtake Mercedes

Our Bureau Updated - March 12, 2018 at 12:26 PM.

To launch improved version of A4 sedan next year

Audi

Audi India is looking at various “volume drivers” as part of a strategy to overtake rival Mercedes-Benz and become number two in the luxury segment in two years.

“The target to reach the second position in two years is achievable,” Mr Michael Perschke, Head, Audi India said, adding that “We take that as a challenge. We would look at leadership by 2015. Next year we're competing in a new segment (with the Q3 – compact SUV) and stepping up our operations. We're the fastest growing within the Volkswagen Group”.

Globally this year, Audi is already expected to claim the second spot in the luxury car space from Mercedes. In India, the luxury car market is led by BMW and accounted for 22,000 unit sales in 2011. By 2015, it is expected to balloon to 55,000-60,000 units.

In 2012, the German luxury carmaker will launch an improved version of A4 sedan, apart from the Q3 – set to be its lowest priced model in the country. The Q3 will compete with BMW's X1 – a model which has given BMW a significant jump in volumes.

Audi is also looking at more volume models by 2013, among which the A3 sportback (large hatchback) is being considered after a recent customer clinic. Expected to push Audi's entry pricing further down, the A3 competes with Mercedes' B-Class. The B-Class is scheduled for launch early 2012.

“We will test waters at the Auto Expo with hybrids as well – the A3 etron model. Next year we aim to be the fastest growing luxury brand. We hope to sell 7,500 units on a 50 per cent growth,” Mr Perschke said.

To support this growth, Audi is also expected to go for a capacity expansion by 2013. An announcement in this regard is expected this January when a Board member from the Head Office in Germany visits the Delhi Auto Expo.

Though few of its models are imported as fully-built units, Audi's annual production capacity at the shared Volkswagen plant at Aurangabad is to touch 6,500 units by next year. With Chakan included, the Volkswagen Group (Audi, Skoda and Volkswagen brands) has a 1.8-lakh units annual capacity in India.

> roudra.b@thehindu.co.in

Published on December 9, 2011 13:38