German luxury car major Audi on Wednesday said it plans to increase local production of its models in India, with its sedan A4, which could be the next one to be manufactured there.

“The Indian market is small for us now, but it has the potential to grow bigger... we may locally produce the A4 model as well,” Audi AG CEO Rupert Stadler said here on the sidelines of Tokyo Motor Show on Wednesday.

He said the company has already started local production of its A6 sedan at the facility of Skoda, which is also a part of the Volkswagen Group.

The company sells its various models including the A8, the TT sports coupe and the Q7 SUV in India through the import route.

Stadler declined to commit put a number to the company’s sales in India but said the premium segment market has been growing fast and offered a good opportunity. Competitors such as Mercedes and BMW have been scaling up targets, he said, “a reflection of the growth” in the top end of segment. Stadler said Audi would continue to introduce its global premium products in India largely through the import route.