Audi will be announcing fresh investment in the Indian market in order to improve its manufacturing setup in the country as it aims to sell over 50,000 cars by 2020.
With disposable incomes on a high, the luxury car market that currently constitutes of just one percent of the total passenger vehicle space is all set to grow in the future. Audi AG wants to be one of the early birds to make the most of this upcoming rise and will soon announce new investment in the Indian market. The Ingolstadt based automaker that dominated the Indian luxury space last year is looking to have a bigger manufacturing setup in the country, as the market has been cited as strategic. The automaker is aiming sales of over 50,000 cars by 2020, five times more than its current numbers.
Part of the Volkswagen Group, Audi India had a dominant share of 34 percent in the luxury market last year and managed to beat compatriots Mercedes-Benz and BMW to the number one spot with 10,851 units sold. However, Mercedes that finished second in 2014 with 10,201 units sold, has been aggressively growing this year and was leading with 6659 units sold for the first half of 2015, a hike of 41 percent. While Audi does not disclose numbers for the said period, it is optimistic to finish first by the end of the year.
Another reason why Audi gets a push further in terms of investment is because it is the only group brand to do well in India, while sales for Skoda and Volkswagen are stagnant. The German luxury brand made its India entry in 2007 and has been operating from the Aurangabad plant shared with Skoda Auto. The automaker has invested a total of 30 million Euros (around Rs. 220 crores) in the domestic market till date and operates in a single shift with an annual manufacturing capacity of 14,000 units. At present, Mercedes holds the record of making the largest investment by a luxury automaker in India with a cumulative amount of over Rs. 1000 crores.