Audi to start production in India next year

German luxury car maker Audi on Monday said it will start production of vehicles in India by next year, utilising group company Skoda's facility at Aurangabad and would float a new sales company.

"In autumn of 2007, Audi is set to start assembling the Audi A6 for the Indian market in Aurangabad," the Volkswagen group company said in a statement, adding it would take the completely knocked down route.

"This move gives us the opportunity to better fulfill our potential on this market. Through supplying the part sets, our locations back in Germany will also benefit," Audi Ag board member (production) Jochem Heizmann said.

The company said in the first full year of production by 2008, it expected to assemble over 300 units of its luxury sedan A6 and sell about 3,000 units by 2010. This year, the company is aiming to sell around 300 vehicles.

"Our goal is to become the leading prestige brand in India. By 2010, we plan to achieve vehicle sales of around 3,000 units," Ralph Weyer, Audi board member for marketing and sales said. Audi would also create a sales company to be based in Mumbai by early 2007, it added.

The Volkswagen group company said its India strategy envisaged expansion of dealer network over the next few years to provide at least eight exclusive Audi dealers in central locations.

At present, Audi has dealers in Delhi, Mumbai and Bangalore selling its range of products, including A4, A6, A8 and SUV Q7.