Automobile Updates 2012 : Audi guns for no.1 slot in premium cars by 2014
MUMBAI: After zipping past Mercedes Benz as the second largest premium car maker in the country, Audi India has set sights on the number one position by as early as 2014, backed by an expanding portfolio and a strong dealer network. People close to the company say that with new launches and network expansion, this is a realistic target and the Volkswagen group-owned premium maker Audi may very well overtake BMW in the second half of 2014 itself.When contacted, BMW and Mercedes Benz declined to comment.
We had aimed to take the number two position by the end of 2012,but we are already number two in the first quarter of this year,thanks to the strong demand for our products.Our strategic intent is to be number one worldwide,and India,by 2015. We can pull forward our measure and activities like the A4 launch,and by pulling forward our measure and activities,may pull forward our goal itself, Micheal Perschke, Audi India chief, told ET. According to reports, Mercedes Benz sold 2,130 units in the first quarter of 2012 against 2,269 units sold by Audi.
BMW stayed in the lead, selling 2,369 vehicles between January and March this year. Going ahead, the next generation A4, which was launched on Thursday (at.27.33 lakh-38 lakh), compact premium SUV Q3, and the A3, to be rolled out next year, are expected to drive volumes for Audi in India. Perschke said the company is aiming to close 2012 with sales of 8,000 units,which can be easily doubled to 16,000,to even 20,000 cars by 2015. "Q3 will get us new customers,it will give us deeper penetration and bigger target audience,it will give us more visibility as well," added Perschke. Audi has lined up at least 6 new products in the next 12-18 months in India to draw in bigger volumes,and intends to expand its reach to 25 locations by the end of the year.
The company is also planning to set up a new assembly line which will assemble Q3,Q7 and eventually A3 over the next couple of years,which will help the car maker negate high import duty and price its products aggressively. With Q3 having a huge demand globally,Audi has only got allocation of 1,000 units for 2012,but once the assembly begins in 2013,it is expected to churn out bigger numbers for the company. But the competition is not sitting idle.The number one player, BMW,has already launched its iconic Mini and the A4 competitor,the new 3 series,should hit the market soon. Mercedes Benz too has lined up B and A class cars for India,which are the high volume models,to compete against the Ingolstadt-based German premium car maker.
The Indian premium and luxury car market is growing at a CAGR of 30-40 % and stood at 23,000 units in 2011. It is expected to touch 30,000 to 31,000 units by the end of 2012. However,with the flurry on entrylevel cars from Audi,BMW & Mercedes Benz,the market is expected to gather pace,and very quickly. "The competition is going to be intense.The fight is going to be between Audi & BMW. Mercedes Benz has somehow lost the plot.The entry of more compact models will drive growth and the one with farther reach and fresh portfolio will have an edge, said Hormazd Sorabjee,editor of Autocar India.
In 2011,BMW was the number one player in the country with sales of over 9,400 cars,followed by Mercedes Benz at 7,430 and Audi at 5,511,taking the number three position.With Audi overtaking Mercedes Benz in the first quarter itself,competition may get even more fierce.
We had aimed to take the number two position by the end of 2012,but we are already number two in the first quarter of this year,thanks to the strong demand for our products.Our strategic intent is to be number one worldwide,and India,by 2015. We can pull forward our measure and activities like the A4 launch,and by pulling forward our measure and activities,may pull forward our goal itself, Micheal Perschke, Audi India chief, told ET. According to reports, Mercedes Benz sold 2,130 units in the first quarter of 2012 against 2,269 units sold by Audi.
BMW stayed in the lead, selling 2,369 vehicles between January and March this year. Going ahead, the next generation A4, which was launched on Thursday (at.27.33 lakh-38 lakh), compact premium SUV Q3, and the A3, to be rolled out next year, are expected to drive volumes for Audi in India. Perschke said the company is aiming to close 2012 with sales of 8,000 units,which can be easily doubled to 16,000,to even 20,000 cars by 2015. "Q3 will get us new customers,it will give us deeper penetration and bigger target audience,it will give us more visibility as well," added Perschke. Audi has lined up at least 6 new products in the next 12-18 months in India to draw in bigger volumes,and intends to expand its reach to 25 locations by the end of the year.
The company is also planning to set up a new assembly line which will assemble Q3,Q7 and eventually A3 over the next couple of years,which will help the car maker negate high import duty and price its products aggressively. With Q3 having a huge demand globally,Audi has only got allocation of 1,000 units for 2012,but once the assembly begins in 2013,it is expected to churn out bigger numbers for the company. But the competition is not sitting idle.The number one player, BMW,has already launched its iconic Mini and the A4 competitor,the new 3 series,should hit the market soon. Mercedes Benz too has lined up B and A class cars for India,which are the high volume models,to compete against the Ingolstadt-based German premium car maker.
The Indian premium and luxury car market is growing at a CAGR of 30-40 % and stood at 23,000 units in 2011. It is expected to touch 30,000 to 31,000 units by the end of 2012. However,with the flurry on entrylevel cars from Audi,BMW & Mercedes Benz,the market is expected to gather pace,and very quickly. "The competition is going to be intense.The fight is going to be between Audi & BMW. Mercedes Benz has somehow lost the plot.The entry of more compact models will drive growth and the one with farther reach and fresh portfolio will have an edge, said Hormazd Sorabjee,editor of Autocar India.
In 2011,BMW was the number one player in the country with sales of over 9,400 cars,followed by Mercedes Benz at 7,430 and Audi at 5,511,taking the number three position.With Audi overtaking Mercedes Benz in the first quarter itself,competition may get even more fierce.
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