Almost five years after it aborted a planned foray into the Indian market with sister concern Skoda, German luxury car maker Audi AG is again preparing to drive into Asia's fourth-biggest car market with the Rs 35 lakh (Rs 3.5 million) two-door TT Coupe.
In its latest venture, the Volkswagen group company will look at back-end synergies with Skoda India, which has established a facility in Aurangabad, Maharashtra to produce the premium sedan Octavia.
Audi country manager (India) Sunil Kaul told PTI that a final decision on the company's strategy for India would be taken by the end of February.
"We have submitted a plan to the Audi board and a decision should be taken by February-end," Kaul said at the ongoing Auto Expo in New Delhi.
Audi plans to import the 1.8-litre turbo-engine TT Coupe as a completely-built-unit and market it through select dealers in Delhi, Mumbai and Bangalore.
The TT Coupe will compete with Mercedes SLK. This will be followed by the A4 and A6 models which will be positioned against the Mercedes C-Class and E-Class respectively, he said.
The TT Coupe would be sent for homologation to the government's vehicle certifying authority Automotive Research Association of India soon after the parent company gives its nod for the India foray.
Depending on the market response to its debut vehicle, Audi would decide on setting up an assembly line in the country. "We are also open to sharing an assembly line with Skoda India," Kaul said.
Skoda is a subsidiary of Volkswagen AG. Pointing out that Indian market for luxury cars is still at a nascent stage, he said, "We can only hope that India becomes another China."
This will be Audi's third attempt to enter the Indian market. The company had first planned to set up a joint venture with the Eicher Group, but abandoned the plan after a detailed market survey.
Later, it announced plans to set up a venture with Skoda, but the tough entry norms and the Directorate General of Foreign Trade's MoU policy deterred the firm from entering the country.
The Asia-Pacific region is the fastest-growing market for Audi. In 2002, the company's sales in the region grew by 27 per cent to 55,900 units. In the first half of 2003, it grew 56 per cent (39,500 units) year-on-year.
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