Audi to start assembling Q5 in India by mid-2010

German car major Audi will start assembling its sports utility vehicle Audi Q5 from mid-2010. The company plans to assemble more cars locally at its Aurangabad plant instead of importing completely built units (CBUs) that attract duty upwards of 100 per cent.
Audi India Managing Director Benoit Tiers said: “The completely knocked down (CKD) production site in Aurangabad is based on an extremely flexible concept that means it can ‘breathe’ and can be adapted to new market requirements. The start of production for an additional model is related to the volume and possible anytime. We will start assembling our SUV Q5 in India by mid-2010.”
Audi has a strong product line in India, including the Audi A4, A6, A8, Q5, the new Audi Q7, the Audi TT Coupe and the super sports car Audi R8. Of these, the A4, A6, Q7 and Q5 have played a prominent role in the company’s sales in 2009 when it sold 1,600 cars. Currently, it manufactures the A4 and A6 under CKD production in Aurangabad.
“The Audi CKD production site in Aurangabad can be adapted to the demand of the Indian market. Around 750 cars were produced at the CKD site in 2009. Until 2015 we plan a yearly production of 5,300 cars,” Tiers said.
The luxury car market in the country has grown to 7,000 units from only 2,000 three years back, and is expected to touch 10,000 in 2010. Luxury car makers are gearing up to capture more of the market by manufacturing the popular models here to bring down costs. The Audi Q5 is priced at Rs 38 lakh for a base model. The company did not want to comment on what could be the price for the CKD model.
At present, the company is in the process of expanding its showrooms from eight to 17 with new outlets coming up in Kolkata, Delhi, Mumbai, Jaipur, Chennai, Ludhiana, Lucknow, Coimbatore and Nagpu