Audi India eyes double-digit growth in 2022 on new models, market recovery

The VW Group firm re-introduced the Q7 with prices starting at Rs 80 lakh

Audi India expects to clock a high double-digit sales growth in the current calendar year riding high on the return of its popular Q7 SUV into the market. On Thursday, the Volkswagen Group company launched the Q7 which was a volume spinner till it got phased out a year-and-half ago as a run up to the BS-VI emission norms in March 2020.

With prices starting from Rs79.99 lakh, the Q7 rivals the Mercedes GLE, BMW X5 among other models.  Albeit on a low base, Audi closed 2021 with3293 units, reporting more than 100 per cent increase compared to the year ago period.

The five electric cars - the e-tron 50, e-tron 55, e-tron Sportback 55, e-tron GT, RS e-tron GT and the petrol powered Q-range along with A-sedans, drove the growth.

“We will grow in double digits this year as well, as we would have the benefit of all new models being available for the full calendar year, which wasn’t the case last year,” Balbir Singh Dhillon, head-Audi India, told  Business Standard. This will be Audi’s fourth model in the line up to be locally assembled locally

The Q7 has been an iconic, one of Audi’s most loved brands and it expects strong sales through the country, said Dhillon adding that it has “almost been sold out”. The company commenced bookings for the seven-seater SUV a fortnight ago. The Q-series including the Q2, Q5, Q8, among others, accounted for close to 45 per cent of Audi’s overall sales till the Q7 got discontinued.

To be available in two variants--Premium Plus and Technology--the Q7 boasts of various features such as adaptive air suspension, Quattro all-wheel drive, park assist and lane departure warning.

The luxury SUV segment shrunk to 1700 units in calendar year 2021 from 3000 units in the year before, according to I.H.S Markit. The sales forecast and market research firm envisages it to clock over 2000 units this year on back of new model launches and improving macros.

Much like the mass SUV segment, there’s a growing preference for luxury SUVs, says Puneet Gupta, director, I.H.S Markit.  “It’s an important segment and the new Q7 can pave the way for a strong comeback of Audi in India,” said Gupta adding that so far the buyers had limited options. A new model will accelerate the segment.

The latest in the Q family of models is just a beginning, said Dhillon. “The year 2022 will see the launch of high volume models, in addition to some top-end products. With a diverse product portfolio, we are looking forward to a strong sales performance.”  

India’s luxury car market expanded at a brisk pace in 2021 with all the car makers seeing a year-on-year growth. It came on a low base in 2020. As the economic recovery from the third wave gathers pace and the start-ups mint more neo-rich buyers, sales will gather further momentum, said I.H.S’ Gupta.

Commenting on the budget Dhillon said, while there was no specific mention of the automobile sector in the budget, the focus on infrastructure bodes well for all the sectors including auto. “Sometimes no news is good news,” he quipped.  A stable policy regime gives confidence, he said.