Audi to continue top-down strategy in India

  • Dec 6, 2012
  • Views : 3901
  • 2 min read

  • By Et
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No immediate plans to introduce smaller cars in India: Audi

Audi A7

German automaker Audi has no immediate plans of introducing its compact cars in India, its country head told ET, bucking the trend among local rivals who are driving in mini's to pump up sales.

The company instead plans to introduce more top-tier cars and sports utility vehicles to corner a larger share of the country's luxury vehicles segment.

"Our top-down strategy has been successful in India so far. We have no plans to dilute our brand by introducing smaller cars like the Audi A1 or other models, even as the competition garners volumes through such offerings," Audi India chief Michael Perschke said.

Luxury brands BMW and Audi have emerged neck-in-neck in the volumes game in India's expanding market for top-end cars. Till October-end, the two had sold 5,174 cars each. Mercedes Benz, Audi's other rival, lagged with 3,651 units sold over the same period.

However, at a time when BMW and Mercedes are drawing customers with lower-priced compact models, Audi has decided to sidestep it. "We will stick to the high luxury quotient and let customer's aspire for our top-notch models, even as we aim to become the No. 1 luxury carmaker in India by 2014," Perschke said.

BMW this year brought in its iconic small car Mini and plans to bring in its 1Series hatchback, its smallest car in the global portfolio, next year. Similarly Mercedes, which launched its B-Class series in India in September, plans to debut its A Class, its smallest marquee models, in 2013.

While most luxury sedans in India are priced upwards of Rs 28 lakh, the smaller models (Merc A Class and BMW 1Series) come with lower tags of about Rs 20 lakh.

Analysts say the Audi brand has been gaining traction in the country because of its appeal among young customers.

"The changing demography of the Indian market, with younger customers keen on buying crispy designed cars that offer contemporary features, is helping Audi lead over its rivals," said Sageraj Bariya, managing partner at Equitorials, a Mumbai-based independent consultancy. "However, the real challenge would in 2013 when all luxury carmakers would fire from all cylinders with their latest models."

To boost sales, most luxury car brands in India have launched dedicated finance, insurance tie-ups and are offering trade-in schemes for used cars.

Falling in line with rivals BMW and Mercedes, Audi has launched Audi Approved Plus, its pre-owned car business that offers vehicles marked down by up to 50% depending on usage and age.

Also read: First Audi cyberstore opened in London

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