Audi A1 not coming to India to compete with BMW 1 Series and Mercedes Benz A CLass next year

Audi has revealed that they have no plans to launch their premium small car, A1 in India. Audi is currently the second largest luxury car maker in India, after BMW. They aim to become the No 1 in the segment by 2015. Their sales this year have beaten forecast already. At the start of the year, Audi India aimed to sell 8,000 cars, but now they have already achieved this figure with a month to spare. Their revised target for 2012 stands at 8,600+ units.

Their decision to postpone the launch of A1 in India might affect overall sales next year. Considering the fact that BMW India and Mercedes Benz India are launching their compact premium hatchbacks, 1 Series and A Class respectively next year. The difference in Audi and BMW car sales figures for the period between Jan – Oct 2012 is just 122 units.

Speaking to ET, Audi India Head, Michael Perschke said, “Our top down model strategy has been successful in India so far. We have successfully sold the top-end A8 stretched sedan and other high-end models to the Indian customers.” Speaking about launching smaller cars like A1, he said, “But we have no plans to dilute our brand by launching smaller cars like the Audi A1 or similar models, even as the competition garners volumes with such offerings.”

Apart from this, Audi India revealed that by 2013 end, of all their cars sold in India, 90% of them will be assembled at their unit in Aurangabad, Maharashtra. A new assembly line is also coming up, which will increase the annual production capacity from current 9,000 to 12,000 units. Audi will be increasing their prices across all cars sold in India by 5% from January 2013.