Audi India to assemble cars in India to cut CBU import duties

On the sidelines of hosting an event in Delhi, Audi India has indicated that it plans to assemble more models instead of importing them as CBU (Completely Built Unit) in the country, in a bid to cut down vehicle overall costs.

The Indian arm of the German auto titan, which is aiming to post a 50 per cent in the current year, has already firmed up its plans to assemble Q5 in the next few quarters. Audi India, which is selling seven models, only assembles two of them in the country. The company plans to improve this ratio next year, by assembling more models locally.

Martin Birkner, head (Marketing), Audi India, told reporters in Delhi, “Currently, we only assemble the A4 and the A6 at our Aurangabad facility, though the Q5 is slated to be assembled by next year. We are currently evaluating the possibility of assembling more cars in the country depending on the market conditions.” He also stated, “We are looking at shifting assemble operation of at least one or two more models to India in 2010, which will give us a better advantage in the market," Birkner said, without giving further details.

Commenting on the growth forecast for this year, he said: “Our target is to grow by over 50 per cent both in this year and 2010. In 2008, we sold around 1,050 units in India and this year our target is to sell 1,600 units and then continue the momentum next year.” He also stated, “We will launch one new model in India, in 2010. This is in addition to the introduction of an upgraded version of an existing model during the year.”

Audi India has reported a year-to-date growth at 64 per cent (Jan-Oct 2009: 1,449 cars; Jan-Oct 2008: 884 cars). Audi India has recorded strong growth all year around in spite of the difficult market conditions. The sales stood at 116 cars for the month of October 2009, thereby registering a growth of 8 percent (107 cars in October 2008). The luxury auto giant, which has so far invested about Rs. 210 crore in India, is looking to establish three more dealerships in Coimbatore, Nagpur and Jaipur by next year. This would take the total dealerships to 15 by 2010. The company also has plans to add three more dealerships in 2011, said Mr Birkner.

Source:[Audi India]