Audi India saw its sales growing at 48% between January and August and has inched up closer to its German rival BMW, which leads India’s luxury car market. During the year, the company also launched five models which, it says, have been contributing to the sales books, particularly the A4 sedan and Q3 sports utility vehicles. Michael Perschke, head, Audi India, tells FE?s Ajay Sukumaran that younger customers are the game changers in the luxury segment and are key to achieving Audi’s sales target of over 50,000 cars by 2020. Edited excerpts:
What’s been driving Audi’s growth in India and what’s the strategy to keep the momentum going?
We follow the top-down strategy for India and we like to focus on class than mass. Currently, we have 12 models in the Audi India portfolio and foresee at least 45% growth in 2012 with a target of 8,000 cars sold by year-end. Our dealer network expansion strategy is very important. We plan to expand the network to 25 dealerships by the end of 2012 from the existing 20 centres. We have over 1.14 million fans on Audi India Facebook page and over 40,000 discussions happening on an average. Our younger audience is more active on social media and have supported us to be the second-largest Audi community worldwide on Facebook after Audi USA. We like to create brand pull than push.
Audi was neck-and-neck with BMW in monthly sales for June. What will it take to reach the number one spot?
Our pillars of growth are dynamic products catering to the Indian palate, expansion of dealership network and after sales service at par with global standards. We plan to be the No. 1 luxury car brand in India by 2015. With a total of 5406 units sold this year so far, a 48% growth rate year-to-date, we are confident of steering towards our target. Our customers are able to identify with our brand equity, this is fuelling our growth in India.
How do you view the current macroeconomic concerns?
The overall market scenario is challenging. Rising fuel prices, depreciating rupee, changing registration taxes in various states, reduction in retail loans and speculation on higher duty on diesel cars, together have a severe impact on automobile industry. With the strategy of building a strong brand, a high quality network and a strong product portfolio, we are confident about our growth in India.
What is Audi’s long term vision for the India market?
By 2015, we aim to be the No. 1 luxury car brand in India and by 2020, Audi aims to sell more than 50,000 units in India, which is a key strategic market for Audi globally. Like the global market, Audi is at No. 2 in India.
How do you expect India’s luxury car market to grow in the next five years?
The luxury segment has tripled over last five years and is expected to grow at 1.1-1.2% of the total car market. By 2020, the luxury car market will be 4.5 to 5 million cars indicatively. The market is also expanding in terms of products and new entrants. The changing dynamics in customer buying behaviour with a shift towards younger, progressive brands is making a mark in the luxury segment. Younger customers are the game changers in the segment. There is a good number of upgraders from premium to luxury. The emergence of an ambitious upper middle-class with increased purchasing power in Tier 2 and Tier 3 cities has significantly contributed and will further contribute to the transformation of the luxury landscape in India.
What are the plans to assemble models at the Aurangabad plant in addition to the A4, A6 ad Q5?
We intend to add Audi Q7 assembly in India soon and eventually assemble Audi Q3.
