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Audi India contemplating engine assembly to stay competitive

Audi India engine assembly being contemplated

Audi is bullish about the Indian luxury car market’s potential to provide double digit annual growth in the coming years.

Audi is keen on taking advantage of the steadily growing Indian luxury car segment. Talking on the sidelines of the Frankfurt Motor Show, the brand’s global CEO Rupert Stadler revealed that the Indian subsidiary is scaling up its investment in the country.

He also said that Audi India is currently exploring the possibilities of local assembly of engines. This is likely to be executed through Volkswagen India who already operates a powertrain plant within its Chakan premises. The top official is optimistic about double digit growth rate in India with sales of around 30,000 – 50,000 cars per annum in the foreseeable future.

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Audi India engine assembly, if sanctioned, will go a long way in making the prices more competitive.

Considering that primary rivals Mercedes-Benz and BMW are already assembling engines in India (both have an arrangement with Force Motors in this regard), it’s imperative for Audi India to start assembling its engines locally. The 2.0-litre TDI diesel engine which is used in a wide range of models would be the first engine to be locally built starting from 2016-17. Such a move would enable the company to increase the local content significantly which would directly translate into higher margins and more competitive pricing.

Also read – 2015 Audi A6 launched in India

Audi India managed to defend its lead in the luxury car segment for the 2014 calendar year but things are set to go down to the wire this year as Mercedes-Benz India is showing signs of a strong comeback. Fresh investment would help Audi India to scale up its presence in the burgeoning market.

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About the author

Nithyanandh Karuppaswamy

Winner of national level automotive quiz competitions, Nithyanandh aka Nithz jumped into the blogosphere right after gaining a degree in Mechanical Engineering. Love for automobiles and an even greater drive to share his knowledge with the automotive community, Nithz is Deputy Editor at RushLane.

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