Audi starts production in India

Audi starts production in India  
Filed under:
News, Audi
on 12/18/2006

Source: Audi

In autumn 2007, Audi is to start assembling the Audi A6 for the Indian market in Aurangabad, in the west of the country. Parts sets manufactured in Germany will be assembled here using a system known as CKD production (CKD: Completely Knocked Down). “This move gives us the opportunity to better fulfill our potential on this market. Through supplying the parts sets, our locations back in Germany will also benefit,” commented Dr. Jochem Heizmann, Board Member for Production at AUDI AG.

Production will take place in an exclusive part of the SkodaAuto India Ltd. site in accordance with the quality standards of AUDI AG. Future employees will be trained in Ingolstadt and prepared for the specific parameters within which they will work. With this move, Audi is building on its sales strategy, which involves greater involvement in new, economically-emerging markets.

As well as CKD production – which should produce over 300 vehicles in 2008, the first full year – the creation of a sales company to be based in Mumbai is scheduled for early 2007.

The India strategy also envisages an expansion of the dealer network over the next few years to provide at least eight exclusive Audi dealers in central locations around the country. At present, the network comprises three dealers in Mumbai, Bangalore and Delhi.

“Audi is in the right place at the right time. India is one of our most important future growth markets. Our goal is to become the leading prestige brand there too. By 2010, we plan to achieve vehicle sales of around 3,000 units. That said, the main priority for us is not volume, but rather a strong brand position and gaining the trust of customers,” stated Ralph Weyler, Board Member for Marketing and Sales at AUDI AG.

Customer satisfaction will be another important focus in the Audi sales offensive in India. Investments in after-sales activities have also been earmarked for a training centre. This training facility will include so-called ‘Alu Workstations’, at which the specific requirements for dealing with aluminium bodies can be taught.

The existing dealer network is currently selling the Audi A4, Audi A6, Audi A8 and the Audi Q7. In 2006, Audi will sell around 300 vehicles. In the first full year of CKD production, i.e. 2008, this figure should reach around 1,000 – including vehicles still being imported directly.

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