Audi to launch one new model every quarter to arrest sales decline

German luxury car brand Audi will launch at least one new car every quarter next year as it looks to regain some lost ground to rivals Mercedes, BMW, Volvo and Jaguar Land Rover.

The Indian subsidiary, which is part of Skoda Auto Volkswagen India, has devised a new plan internally called Strategy 2025.

As per the plan, Audi will look to introduce a series of new products, boost consumer reach especially in Tier 2, 3 and 4 cities, explore adding more locally assembled products and increase brand loyalty.

Audi, which clinched the numero uno spot in the luxury car space in 2012-13 has seen a dramatic fall in sales in 2018, with its ranking falling to the third spot. Mercedes-Benz and BMW remain the two biggest luxury car makers in the country, respectively.

Tata Motors-owned Jaguar Land Rover is at the fourth spot while Swedish brand Volvo is at the fifth spot.

Audi on October 24 launched the eighth generation A6 sedan in India priced at Rs 54.20 lakh. The car competes with the Mercedes E Class, BMW 5 Series, Jaguar XF and Volvo S90. Audi has launched the A6 with a Bharat Stage VI (BS-VI) engine.

Speaking to Moneycontrol Balbir Singh Dhillon, Head of Audi India, said, “We have defined ‘Strategy 2025’. We have involved dealers, employees and our head quarters. The customer is at the core of all the activities at Audi. What kind of models, new technologies, new partners we need to bring in so that it becomes a long term profitable relationship.”

The luxury car making companies are feeling the squeeze of the government-initiated steps such as the hikes in cess, import tax and registration fees which had dampened retail demand. The luxury car market has remained stagnant at around 40,000 for the last two years and this year volumes will be even worse.

During January-September period market leader Mercedes said it sold 9,915 units, marking a fall of 16 percent compared to the same period last year when it sold 11,789 units. BMW during the same period 7049 units, posting a fall of 11 percent compared to 7915 units sold in the same period last year.

In 2018, sales of Audi slumped by 18 percent to 6,463 units as against 7,876 units clocked in 2017. Audi does not share monthly, quarterly or half yearly sales data. The company is focusing on improving markets outside of the metros.

“The Delhi-NCR market was contributing 35 percent and Mumbai market was generating 20 percent. Together they controlled half of the luxury car sales in India. This has changed. Their contribution has come down to 30-35 percent. Category B and C town customers are coming forward to buy luxury cars,” added Dhillon.