Audi India to Make Entry into Used Car Business

Audi India will soon enter the used car market. According to the company, this business will account for 10-20% of their new car sales. Michael Perschke, the head of Audi India, Michael Perschke, said that by year end, they will begin their used car business beneath the brand of Audi Approved Plus.

The company launched four new variants of their A6, executive class sedan on Wednesday, with a price ranging between INR 37.7 lakhs and INR 47 lakhs, according to ex-showroom prices in Delhi. The four new variants will be available across all 13 showrooms of the company in India. The car, which is being assembled at the company’s Aurangabad facility, claims to have a 21kmpl mileage.

The company also plans to expand their dealer outlets from the current 13 outlets to 18 by year end. Perschke said that by 2011, they will have around 18 dealer outlets located across India, with plans of opening dealerships in cities like Indore, Lucknow and Coimbatore.

This will lead to 600 extra workers for their operations in India by 2013. They will also be hiring new skilled talent at 3 different levels, which includes corporate, production and dealership. Following the introduction of their new sedan in the market, the company hopes on doubling their Audi production from their plant in Aurangabad.

The company made an investment of around 30mn Euros, from which they have already utilised around 20mn Euros. The company has set a sales target of more than 5,000 vehicles this year, in comparison to last year’s 3,003 cars sold. The company managed to sell around 3,145 vehicles in the period of January to June alone, in comparison to the 1,626 vehicles they sold in the corresponding period last year, a growth of 93%.

Perschke added that they target was to have around 25% of the luxury car segment in India by 2015, and they are right on track to achieving it. The company has so far launched five new models in India this year, excluding the A6, which is a new variant. Perschke said that they were considering introducing more new cars in lower segments through a top down advance.

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