Audi India targets small cities for higher sales - Report

02/09/2015 - 15:05 | ,  ,   | Riza Rizvi

Audi is focusing on small cities and its used car business to increase market penetration.

Audi India is aggressively expanding in a bid to reach out to more customers and increase market share. ETAuto reports that the company is now targeting small cities as it has received good response for its cars there.

Audi A3 Sedan Review red top
For Audi, growth rate in small cities is around 20-30 per cent, and overall, it led the Indian market in the previous fiscal.

Head of Audi India, Joe King, in an interview with PTI said that they were planning for the next phase of expansion. He did not reveal much details except that the strategy includes increasing production capacity and a new model lineup.

Commenting on the market in non-metros he stated, “Non-metros are doing very well for us. The response that we have received from new places like Guwahati and Ranchi are very encouraging.” Apart from the above mentioned cities, the company is also considering opening dealerships in Jammu and Dehradun with a showroom in Rajkot opening soon.

King explains the push in smaller cities by mentioning that “Growth rate has witnessed a 10 per cent increase in metros while it has jumped by 20-30 per cent in tier II and tier III cities.”

Audi Q3S Review rear three quarter
The company plans to increase its 'Audi Approved Plus' used car outlets to 10 in 12 months.

Audi is not relying only on non-metros to boost growth but it is also looking to expand ‘Audi Approved Plus’ (its used car business) to a total of 10 outlets in the next 12 months.

Audi is currently at the top of the luxury car market and was ahead of Mercedes-Benz in the previous fiscal year with total sales of 11,292 units; clinching the number one position by a slender margin of just 79 cars. However, first quarter of this fiscal, Mercedes has moved ahead by selling 3,566 vehicles while its German rival has managed just 3,139 cars.

[Source: ETAuto]

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