Audi may start assembling seven models in India by 2014-15. At present, Audi locally assembles three models including sedans A4, A6 and SUV Q5. With basic customs duty for imported cars priced over $40,000 going up from 60% to 75%, local assembly of completely knocked down (CKD) units will give Audi certain cost advantage.
Audi will start local assembly of its high end sports utility vehicle Q7 this year. Expecting high demand for its entry level SUV Q3, which is likely to be priced Rs.20-25 lakh, Audi will assemble this one in India.
The company is adding capacity by 3500 units this year to take its annual production capacity to 9500 units at its Aurangabad facility. Audi also has plans to bring small car A1 and slightly larger A3 to India through CKD assembly route.
“A1 is very feasible,” Michael Perschke, head, Audi India told HT. “But the question is when India and our company are ready for it. Building A3 in India is at a very early stage of analysis now.”