Audi might start making electric cars in India
What's the story
Audi India is contemplating the local production of a battery electric vehicle (BEV). The decision is expected in the coming months. This move comes as part of Audi's three-pillar strategy to double its market share in India's luxury car segment from around 8% to 15-16% over the next three to five years. The strategy focuses on customer-centricity, new product launches, and network expansion, especially in tier-II and tier-III cities.
Trade benefits
Leveraging India-EU FTA
Audi India Brand Director Balbir Singh Dhillon said the company is looking to leverage the proposed India-EU free trade agreement (FTA) to introduce more models in India.
This would help test market demand while expanding its dealership network, especially in tier-II and tier-III cities.
"We are contemplating a locally made BEV electric car with a decision expected in the next couple of months," Dhillon said.
Growth plan
Doubling market share in next 3-5 years
Dhillon elaborated on Audi's strategy to double its market share in the next three to five years.
He said it hinges on customer-centricity, new products, and network expansion.
The proposed India-EU FTA could allow Audi to bring more models into India at competitive import duties and test their sales potential before considering local manufacturing.
"FTA will help us bring more models to India for testing the volumes," he added.
Manufacturing strategy
Proposed EU-India FTA could create export opportunities
Dhillon said Audi would continue to rely on local manufacturing for its core portfolio. However, imports could help expand the range of vehicles available to Indian customers.
He also highlighted the potential of the proposed EU-India FTA to create export opportunities for the wider Indian automotive industry.
"We will also get an opportunity to export the car, not Audi per se, but the Indian automotive industry," Dhillon said.