Audi to add factory capacity this year

Audi India is the leader in the luxury segment in India with as share of 34%

With annual sales crossing 10,000 in 2014, German luxury car maker Audi India plans more investment in manufacturing.

At its lone production facility at Aurangabad, shared with Skoda, the capacity on a one-shift operation is 14,000 units annually. “First, we will go into a double shift. There is scope to expand within that facility. Whether there is going to be another facility or expansion of the current one, I cannot say. But, there will be fresh investment this year, in line with Make in India. It will be done keeping 15 to 20 years in mind,” Joe King, head, Audi India, told Business Standard.

“India is now just outside the top-20 markets in terms of volumes for the group. It has been a tough period with exchange rates; the rupee is still not back to where it was. A lot of work is still to be done. But, globally on the board, India is being discussed frequently.” With a 34 per cent share in the luxury car segment, Audi India, the leader here, had sales of 10,851 units in 2015.

It expects double-digit growth this calendar year.

“The entire segment is just 32,000 of an overall car market of 2.2 million. So, this 32 could become 64 well within a year. Specifically for 2015, my guess is seven per cent growth for the industry. For Audi, I think, it will be a double-digit growth, especially with the 10 new models coming up this year,” said King.

Audi will be launching a little more than 10 new models this year in the Indian market, of which at least two will be in the sports utility vehicle category, compared to the 14 models likely to be introduced by close competitor Mercedes-Benz. All the 10 models to be introduced by Audi India will be sedans.

“They (Mercedes-Benz) had 15 models last year; we had only one but still maintained the lead. It is not about the models; it is about the right models. I can bring in 25 new models because there are a lot available with us overseas but that does not make sense,” said King.