Posts Tagged ‘Audi India Strategy’:


More on Audi’s strategy in India

Previously we wrote an article on Audi India’s CEO Michael Perschke interview with the countries national newspaper Daily News and Analysis.

Today we discuss different element of the interview to give more of an insight into what Audi have planned for India.

Audi’s used car business set to expand?

Michael Perschke said that they are planning a new scheme for the new car business to be rolled out next year. He also said that they are researching further ways on how to enter the leasing market.

His exact words in the interview were “For the used car business, we have a concept in place. We will roll it out by early next year. We are also closely monitoring the leasing business. We have a sister company, Volkswagen Finance, which is monitoring it. We are studying the market. We are looking carefully at what the competition is doing. Definitely, India has a future for leasing as a product, but we will analyse the business before getting into it. It is definitely one of the potential building blocks for our business strategy.”

Audi’s new products in 2012

Audi will showcase some new models at the Auto Expo including the S6, according to Perschke. He said “You will see a couple of products at the Auto Expo. You will see the S6. It is an extension of the A6 line-up; it will have 420 horsepower; it will also be the strongest A6 available. It will be a high performance car, yet it will also embed the technology — what we call the ‘Ultra’. It will be lightweight and have reduced engine size. We will also showcase the ‘E-tron’ concept, which is our technology of advanced engine. It will be a hybrid — combustion as well as electric engine. We will also showcase the A3 sedan concept, first showcased in Geneva this year, where we saw positive response from India. There will be one or two surprises during the Auto Expo.”

He went on to say how around 9 to 10 different products will be released in the country in 2012. “Next year, we have 9-10 different products, engines and models, which will come to India. Each of these will have their contribution. So, 2012 will be a combination of products contributing to our volume as well as image.”

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Audi’s strategy in India

Currently, Audi India is behind their German counterparts, BMW and Mercedes-Benz.

Michael Pershcke, the Head of Audi’s Indian operations gave an insightful interview to DNA India, one of India’s most popular newspapers.

We take a look at some of the most points throughout the interview.

A4 and A6 expected to better in 2012

Pershcke described how the best selling models in the country, the Audi A4 and the Audi A6, will sell even better next year.

We have three core volume models — the A4, A6 — which are our bread and butter cars and the Q5. A4 and A6 are turning in monthly numbers of 150-200 cars this year and we will take this number a little bit higher next year.”

Clever strategy with the Q models

Currently Audi are the market leaders for the luxury SUV’s in India and the release of the Q3 will help enhance that position.
Pershcke said “But first, we will start with the Q family, which currently has Q7 and Q5. We sell around 750-800 Q7s annually. We are the market leaders in the luxury SUV segment with these two products. And next year will be right for the launch of Q3. We have not decided when, but it should hit the market next year, towards the second half. There is a certain level of expectation for Q3. So, for the first couple of months, we will not necessarily hunt for volumes but we will hunt for aspiration, image and positioning and make the product stand out. “

He also underlined the how the Q7’s reputation will help the Q3’s appeal.

“If we look at the competition in this segment, we will see that Audi can be positioned higher. It is going to be a small Q7, which is an icon in that segment. Every household in Bollywood has a Q7. It is aspirational and yet a practical car. We see Q3 as by far the most aspirational product in this segment.”

No Audi A1 for now

Pershcke did say that it is currently too early to release the Audi A1 as it represents a small market in India.

He said “We are quite clear that today in India; it is too early to bring A1. There is definitely a niche market, but I personally feel that we should focus on those cars which are game changers for the brand.”

 

Although Audi India appears to be meeting their targets, they are still lagging behind Mercedes-Benz and BMW. A lot of work clearly still needs to be done.

 

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