German luxury automaker Audi has started its India product offensive for 2021 with the launch of the fifth-generation Audi A4, but that’s only the beginning.
2021 will be a busy year for Audi India as the automaker is set to launch a comprehensive line-up of cars, from sedans to SUVs, ICE variants to an electric car, and models in the entry-level luxury segment as well as niche segments like a sports car, Balbir Dhillon, head – Audi India told CNBC-TV18.
The product strategy, while geared towards making the brand more accessible to the younger, aspirational first-time buyer with the launch of entry-level models like the Q2 and the Audi A4, also looks to cater to every type of customer in the market.
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“We intend to offer sedans for the customer who prefer to ride low, and SUVs for customers who prefer height, as in the luxury space sedans and SUVs contribute almost equally to volumes,” Dhillon said.
The latest Audi A4, a mid-sized luxury SUV, will be made in India and is on sale at a starting price of Rs 42,34,000 ex-showroom.
Since the A4 and Q2 are products that play in the entry level luxury segment, competitive pricing will be key to market success.
“As we start selling more volume models like the A4, the proportion of our locally made production in India will start to change quickly as well”, Dhillon said, adding, “it is impossible to compete with imported products in a market where the others are manufacturing locally”.
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Audi will therefore look to manufacture 80-85 percent of its portfolio in India, and import the 20 percent models which sell in lower volumes.
Dhillon said Audi has seen sustained demand in line with the passenger vehicle industry even after the festive season. “December was one of our highest selling months this year,” he added.
