Audi to drive into smaller cities for expansion in India

Apart from bringing in new models, firm is set to expand its used car business under Audi Approved Plus

As it gears up for the next phase of expansion in India, German luxury carmaker Audi is keeping a keen eye on smaller cities considering the high growth rate it has witnessed in non-metros.

Apart from bringing in new models, the company is also preparing to expand its used car business under Audi Approved Plus with plans to take the total number of outlets to 10 in the next 12 months from three at present.

"In 2007 when we entered, we set up plans which were good for the initial years. Now we are preparing for the next phase of expansion in India," Audi India Head Joe King told PTI.

While he did not share details on investments for the next phase, he said, "it will be announced by the headquarter soon and it will be all-encompassing for the longer term, which includes fresh production capacity and new model line up."

King said the company will continue with its strategy to be "closer to customers" as it expands in India with a special focus on the smaller cities.

"Non-metros are doing very well for us. The response that we have received from new places like Guwahati and Ranchi are very encouraging," he said, adding Audi India would soon open its showroom in Rajkot.

The company is also considering opening showrooms in Jammu and Dehradun and plans are being firmed up at the moment, sources said.

"Although the base is smaller, in tier II and III cities the sales growth rate is around 20-30 per cent, while in metros it is 10 per cent," King said while elaborating on the potential of smaller cities.

On the used car business, King said the company has been gaining good traction.

"Our outlet in Gurgaon has been doing well and we are now looking for more market penetration and the plan is to roll out more outlets of the Audi Approved Plus," he said.

The company will open an Audi Approved Plus outlet in Jaipur as part of its plans to have 10 such showroom in 12 months.