Audi currently holds around 8 per cent of the luxury car market in India.
Audi India is considering local manufacturing of a battery electric vehicle (BEV) as part of a three-pronged strategy to double its share of the luxury car market to 15-16 per cent over the next three to five years, a senior company executive has said, according to PTI.
Audi India Brand Director Balbir Singh Dhillon outlined the company's plans to strengthen its position in the country through customer centricity, new product introductions and dealership network expansion. Audi currently holds around 8 per cent of the luxury car market in India.
The German luxury carmaker is also looking to use the proposed India-EU free trade agreement (FTA) to introduce more models in the country and assess market demand. It plans to expand its dealership presence, with a particular focus on tier-II and tier-III cities.
Also read: Audi Q3 Local Assembly Begins In India Ahead Of Launch
"We are contemplating a locally made BEV electric car with a decision expected in the next couple of months," Dhillon was quoted as saying by PTI.
Audi India Targets 15-16% Market Share
Dhillon said the company expects its focus on customers, new products and network expansion to help it double its market share over the next three to five years.
"So we intend to double our market share in the next three to five years. Customer centricity, new products, and network expansion-put together, we believe should give us doubling of our market share in the next three to five years."
Audi is also considering the proposed India-EU FTA as a way to bring more models into the country at more competitive import duties. This would allow the company to assess their sales potential before deciding whether local manufacturing is viable, Dhillon said.
"FTA will help us bring more models to India for testing the volumes," he said.
FTA Could Expand Audi's Model Range
Dhillon said Audi would continue to depend on local manufacturing for its core portfolio, while imports could help broaden the range of vehicles available to Indian customers.
He also highlighted the potential export opportunities that the proposed trade agreement could create for India's wider automotive industry.
"We will also get an opportunity to export the car, not Audi per se, but the Indian automotive industry, and you know we are opening up 95 per cent of the markets on both sides..
Audi India plans to direct much of its upcoming dealership network expansion towards tier-II and tier-III cities. The strategy includes entering new towns and converting some existing facilities into new-car showrooms.
