Targetting a new segment of the compact luxury sedan in India, German luxury carmaker Audi on Thursday launched A3 in the price range of Rs22.95 lakh and Rs32.66 lakh (ex-showroom Delhi), thereby starting a price war in the entry level luxury segment.
“We think this is the right product for self driven, young customers in urban environment. Besides, we are also looking to those existing Audi customers who are looking for second car with the A3,” said Audi India Head Joe King.“A3 is expected to join the compact SUV Q3, sedans A4 and A6 as the company’s growth drivers in India. We expect 15 per cent of our total sales to come from this model,” added King when asked about role of the product and its likely sales.
The A3 is available in both petrol and diesel variants. While petrol variant is powered by a 1.8-litre engine and comes at a price of Rs28.95 lakh, diesel version with a 2-litre engine comes in four variants priced at Rs22.95 lakh, Rs25.95 lakh, Rs29.95 lakh and Rs32.66 lakh (ex-showroom Delhi).Audi A3 competes with those of the A-class and B-class from Mercedes-Benz and BMW 1-series.
“As expected in the first half of the year, the industry growth was flat but we expect sales to pick up in the second half. As for Audi we are looking at double digit growth this year, which will be another record year for us,” said King when asked about sales prospect of the company in the current scenario.
Audi sold 10,002 units in India in 2013 and became the first luxury car maker to cross the 10,000-unit milestone. The company stayed as the number one ahead of German rivals Mercedes (9,003 units) and BMW (7,327 units).“Next year when we will have the full year sales of A3, we expect to do even better,” King opined.Audi India has already started local production of the model from VW group firm Skoda’s Aurangabad plant. The A3 is the first model from the Audi stable to be locally produced before being launched in India. Other models, such as sedans A6 and A4; SUVs Q5, Q7 and Q3 which are locally produced now were imported as completely built units (CBUs) at the time of launch.
King said the local production of the Audi A3 Sedan in India is continuation of the company’s growth strategy and consistent focus on the Indian market. The annual capacity at the plant for all Audi models is more than 14,000 units in a one-shift operation.