Audi hopeful of retaining top spot in India with new launches this year

MUMBAI: Ingolstadt-based luxury car maker Audi, which struggled to maintain its lead over German rival Mercedes-Benz in calendar year 2014 and FY15, is confident of extending its market leadership in 2015 and maintaining double-digit growth momentum this year, driven largely by new- generation models. The automaker plans to launch Q3 and Q7 SUVs later this year, besides expanding its dealerships in the country.

Audi closed the calendar year 2014 ahead of Mercedes Benz, but with the FY15 sales of 11,292 units, it saw the lead narrowing to just 79 units with Mercedes Benz clocking sales of 11,213 units.

Speaking on the sidelines of the Audi RS 7 Sportback launch (Rs 1.4 crore ex-showroom, New Delhi) Joe King, head of Audi India told ET, "We are slightly surprised that we maintained our leadership through last year as we had only one new product A3. Now, with the product lifecycle coming in at the right time for us, we will continue to grow by strong double digits this year and we will be No.1 by the year-end." The Indian luxury car market has remained range bound at around 33,000 to 35,000 units. Audi has a market share of 34% and King is confident of holding on to the market share without introducing an entry-level luxury hatchbackin India — a segment that rival Mercedes-Benz has created with the A and B Class and has garnered a sizeable volumes.

"We don’t feel the need to enter the hatchback space. We think the A3 sedan is the right size product for the Indian market. We have a clear product strategy, our dealers are very profitable and volumes have come through attraction of our brand. With the new products lined up we will grow," said King.

The company is hoping for this growth momentum to sustain and see interiors of the country will contribute to incremental volumes for the future. The company is expected to announce its next phase of investment along with VW Group in the coming months, which may see some products getting assembled out of its Chakan plant near Pune.

"There is undoubtedly enormous amount of the wealth, but accessibility is important and that is what we are trying to achieve this year by penetrating deeper into the country. It is not unrealistic to say that we are looking at a rapid growth in this country. The point really is are we able to take a sizeable market share. We have a 34% share, which is amongst the highest in the world," said King.