Audi A6 takes on Merc and BMW in luxury launch

Audi, the German luxury car maker, plans to get into the used car business in India by the year-end. The company expects this business to account for 10 to 20 per cent of its new car sales.

“By the end of this year, we will start our used car business under the Audi Approved Plus brand,” Audi India Head, Mr Michael Perschke, told reporters here.

AUDI A6 LAUNCH

The company on Wednesday launched the new version of its executive class sedan, A6, priced between Rs 37.7 lakh and Rs 47 lakh (ex-showroom Delhi). The four variants will be available in all 13 Audi dealerships across India.

Looking to cash in on the growth of luxury cars in India, German giant Audi on Wednesday launched the car that it expects to reel in the buyers next year — the A6. The vehicle, pitched against the BMW 5-series and the Mercedes E-class at the heart of the luxury car segment in India, has a

starting price of Rs 37.7 lakh going up to R47 lakh (ex-showroom Delhi).

“The A6 is critical for us from the point of view of volumes and we have high expectations from it,” said Michael Perschke, head, Audi India. “We have sold 3,145 cars between January and July — a 93% growth over last year — without having a major volume model for the better part of the year. We will do as well if not better for the rest of the year and close the gap on our nearest rival substantially.”

Assembled at its Aurangabad facility, the car claims a mileage of 21 kmpl.

EXPANSION DRIVE

The company will be expanding its dealer's network from 13 to 18 by the end of 2011.

“By 2011, we will have 18 dealers pan-India, with plans for new dealerships in markets like Coimbatore, Indore and Lucknow among others,” Mr Perschke said.

“This would mean 600 extra jobs for our India operations by 2013. We will be hiring skilled talent at three levels – corporate, dealership and production,” he said.

DOUBLING OUTPUT

With the launch of the new sedan, the company plans to double the production of Audi from its Aurangabad plant.

Luxury car sales have grown in high double digits in the first half, though overall industrial growth has dipped to 8%. Over the last 5 years, the luxury car market has expanded by an average 64% per year.

“The luxury segment is stable and not much affected by high inflation or interest rates,” said Perschke. “Our customers are already established and well settled. With them the need to upgrade supercedes any negative impact of high fuel cost or interest rate.”

“From September, we will start double shifts, which will increase our annual output to 6,000 units from the current 3,000 units in a single shift,” Mr Perschke said.

Audi India investment figure was put at €30 million, of which around €20 million has been utilised so far.

SALES TARGET

The company is targeting sales of over 5,000 units this year, up from 3,003 cars sold last year. It sold 3,145 units in the January-July period against 1,626 units in the same period last year, up 93 per cent.

“Our target is to have 25 per cent Indian luxury car market share by 2015 and we are on track,” Mr Perschke said.