Audi is aiming to expand its market share to 50,000 units by 2020 and is considering to locally assemble engines in India to better cater to the growing demand for luxury vehicles.

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Audi AG is optimistic about its Indian operations as the premium car space is expected to grow immensely in the following years. The automaker aims to sell over 50,000 cars by 2020 and is looking to expand its production facilities in the country to cater to the forthcoming demand. On the sidelines of the ongoing Frankfurt Motor Show, Audi CEO, Rupert Stadner stated that the company is looking at the possibility of assembling engines in India amidst the growing demand for luxury vehicles.

That said, the discussion is still in the preliminary stages and a concrete decision will eventually come forward. Nonetheless, it does fall in line with Audi’s plans to further invest in India which will see the expansion of its existing manufacturing facility. It’s not just Audi but BMW, Volkswagen and Skoda are also looking to improve their investments in the country with a greater focus on locally developing vehicles and manufacturing. Volkswagen recently stated that it is looking to possibly set up a full-fledged development centre in India closer to its manufacturing plant so that it can work together in production planning.

Volkswagen’s new R&D facility will be in addition to the special centre in India that currently optimises products with improved localisation and concepts. In fact, the automaker’s much talked about compact sedan will be a result of the same and is likely to be introduced at the 2016 Auto Expo. Even Skoda is working on a heavily facelifted Rapid sedan that is being developed in India and will be part of the 2-3 launches the company has planned for next year.

Audi could certainly be the first manufacturer to heavily localise its products in the luxury space, thereby achieving a significant pricing advantage and better profit margins. Moreover, this will also help the company penetrate deeper in the market as both Mercedes-Benz and BMW are getting aggressive with domestic operations.

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