For a company that sold 1.3 million cars across the world in 2011, Audi should logically have no compelling reason to be bullish on India whose share was a mere 5,511 units. Yet, it is this market that will get a lot of attention from the German carmaker till 2020 along with Brazil and Russia.

China emerged Audi's largest selling market, even ahead of Germany, in 2011 with 3.13 lakh cars and took up a lion's share of Asia-Pacific's tally of 3.73 lakh units. Europe was the largest sales region with 7.26 lakh cars while North America was some way behind with 1.42 lakh units.

“India will get more attention and support from Audi especially when it is tipped to be the third largest car market by 2020. We have been China-focused for some years but, of late, are shifting our attention to India,” Mr Michael Perschke, Head, Audi India said at a roundtable discussion.

The company has already indicated its intent to sell 50,000 cars here by 2020. This will involve ‘deep indigenisation' as volumes grow. Audi and Skoda share an assembly plant in Aurangabad while parent company, Volkswagen, has commissioned a full-fledged production facility in Chakan near Pune.

It is, therefore, only logical that the cost benefits of localisation, within the VW fold, will extend to all brands.

It also remains to be seen if the years ahead will see Audi move to a bigger plant considering numbers will be 10 times more than the present level. For the moment, the VW group's strategy is to have mass-selling brands such as the Polo and Vento (along with the Skoda Fabia and Rapid) produced at the Chakan plant while premium models, which involve less localisation, are assembled in Aurangabad.

As a luxury brand, Audi's key competitors in India are BMW, Mercedes and Jaguar Land Rover. Mr Perschke reiterated that the company had no intention of playing the price game but stick to its target of being the ‘ultimate-in-aspiration'.

“Audi is the fastest growing luxury brand not only in volumes but in aspiration. It is a ‘young-at-heart' brand and we are clear that our product strategy should have substance and stay ahead of competition,” he said.

The company is betting big on the Q3 which debuts during the course of this year. Mr Perschke said the objective was to ‘conquer one new product segment every year'.

“From our viewpoint, a brand that matures over time creates the right image. Long-term success is priority and striving for quick volumes will only harm the brand,” he added.

> gmurali@thehindu.co.in

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