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India production to go up by 50 pc next year: Audi
The company's wholly-owned subsidiary, Audi India, is also considering the launch of luxury sedan A7 and will initiate a market study for the same.
"Seeing the demand that we are having for our products, I think that we will have to start the second shift at our plant. Our production from the plant will be exceeding 3,000 units next year," Audi India Head Michael Perschke said.
The company, which currently assembles luxury sedans A4, A6 and sports utility vehicle Q5 at its Aurangabad facility, expects to produce about 2,000 units this year, he added.
Perschke said the company will roll out a new variant of A6 next year from the facility. The plant has an installed production capacity of 6,000 units.
"We will also launch a completely new A8 and a 4.2 litre TDI version of Q7. These two cars will be imported," he added.
When asked if the company is planning to introduce any new model in India, Perschke said: "We are looking very seriously for the A7. We will do a market research and evaluate its demand in the country."
He, however, declined to give any timeframe for launching the vehicle in India.
He said the company expects to sell about 2,700 units this year compared to 1,658 units in 2009.
Asked if Audi India will start a used car business like its rivals, Mercedes-Benz and BMW, Perschke said: "Most probably from next year we will have the pre-owned car business. We already have it in Europe under 'Audi Plus' brand."
He said the company has not yet decided about the branding of the used-car business for India.
Audi India had earlier committed an investment of 30 million euros till 2015. It has already put in about 65 per cent of the amount.
"Every year we are exceeding our own expectations. If the market grows at this rate, then we see all reasons to revise our investment by 2012," Perschke said.
He said the luxury car market in India could cross the 12,000 units mark this year. With a target of about 2,700 units for this year, Audi's share would be about 25 per cent.
The company is also expanding its dealership network to about 20 by next year from the existing 14 outlets, he added.
Skoda consolidating position
After almost a decade of its entry into the Indian market, Skoda Auto, part of the Volkswagen Group, is now focussing on consolidating its position in one of the world’s fastest growing car markets. Accordingly, it is all set to launch its sports utility vehicle (SUV) Yeti, besides chalking out plans for India launch of its new compact car that is now under development. Buoyed by the tremendous response at the recently concluded 10th auto expo in New Delhi, the Czech automaker will be taking unique initiatives that include selling cars online and opening boutique outlets, besides launching new variants of the four models it currently sells in India.
Explaining the importance of the Indian market, Skoda Auto’s Member of the Board (Sales and Marketing) Reinhard Fleger told The Hindu that “The Indian automobile industry continues to be among the most promising car industries across the globe that would continue to grow in the coming years backed by an estimated economic growth of about 7 per cent. Skoda has a share of around 25 per cent in the mid-size segment. We have aggressive plans for the Indian market and aim to emerge as a major player. The launch of Yeti is an integral aspect of this plan.”
Yeti, which is one of the best-selling SUVs in Europe, is likely to be launched in mid-2010. Initially, the top-end variant would be made available in India followed by more engine and model options. “We hope Yeti will help us capture 10-15 per cent share in the SUV market. Overall, we are doing exceptionally well. Globally, India will emerge among top five markets for us from the 11th position now,” said Skoda Auto India’s Member of the Board (Sales and Marketing) Thomas Kuehl.
To address low-cost car markets like India, Skoda had already begun work on a car smaller than Fabia. “Work on the ambitious project is now on at our headquarters. We will surely be launching the car here and use India’s low-cost advantage to our benefit for this model,” he said. The car is likely to be launched next year. Skoda also plans to leverage India’s low-cost manufacturing advantage.
About expanding Skoda’s reach in India, Mr. Kuehl said the company was planning to add to its existing network of 65 dealerships to cover more cities and towns. Its initiative to sell cars online has also been a hit and now the company wants to make it a permanent feature to boost sales.






