Audi starts A3 production in India before launch

New Delhi: German luxury car maker Audi AG is betting big on its upcoming A3 sedan to stretch its leadership in the Indian market and has started local production of the model from Volkswagen Group firm Skoda Auto’s Aurangabad plant.

The A3 will be the first model from Audi to be locally produced before being launched in India.

Other models, such as the A6 and A4 sedans and the Q5, Q7 and Q3 SUVs, which are locally produced now, were imported as completely built units (CBUs) at the time of launch.

“The local production of the Audi A3 sedan in India is in continuation of our growth strategy and consistent focus on the Indian market,” Audi board member for production, Hubert Waltl said.

The A3 is slated to be launched in the Indian market next month and will be available in both petrol and diesel variants.

Explaining the reasons for producing the A3 in India before launch, Waltl said: “The market potential coupled with the world-class infrastructure in the plant, efficient working processes, qualified workforce and a well-developed logistics environment were the factors that motivated us to expand the product portfolio at the Aurangabad plant.”

The whole-year capacity at the plant for all Audi models is more than 14,000 units in a one-shift operation.

Bullish on the potential of the A3, Audi India head Joe King said: “We believe that the launch of this car would see us further consolidating our market share and strengthen our leadership position.”

In 2013 Audi sold 10,002 units in India, becoming the first luxury car maker to cross the 10,000 unit milestone and stay top seller, ahead of German rivals Mercedes with 9,003 units and Bayerische Motoren Werke AG (BMW) with 7,327 units.

Globally, the Audi A3 has been a huge success and was voted “World Car of the Year” in 2014, overcoming 23 rivals, King added.

In India, the luxury car market has seen the likes of the A Class and B Class hatchbacks from Mercedes and the 1 Series from BMW that have improved the affordability range with prices starting just above ₹ 20 lakh.

The Audi A3 is also targeting aspiring customers as well as repeat buyers.

“(With) Audi A3 Sedan, we will be creating a new segment, that of the compact luxury sedan, in India. The Audi A3 sedan will attract an entirely new customer segment,” King said.