Audi to up production by 50% in India by 2011

German luxury car-maker Audi on Friday said it will ramp up its output by 50 per cent in India to about 3,000 units next year, even as it gets ready to enter the used-car business by 2011.

The company's wholly-owned subsidiary -- Audi India -- is also considering the launch of luxury sedan A7 and will initiate a market study for the same.

"Seeing the demand that we are having for our products, I think that we will have to start the second shift at our plant. Our production from the plant will be exceeding 3,000 units next year," Audi India Head Michael Perschke told PTI.

The company, which currently assembles luxury sedans A4, A6 and sports utility vehicle Q5 at its Aurangabad facility, expects to produce about 2,000 units this year, he added.

Perschke said the company will roll out a new variant of A6 next year from the facility. The plant has an installed production capacity of 6,000 units.

"We will also launch a completely new A8 and a 4.2 litre TDI version of Q7. These two cars will be imported," he added. When asked if the company is planning to introduce any new model in India, Perschke said: "We are looking very seriously for the A7. We will do a market research and evaluate its demand in the country."

He, however, declined to give any timeframe for launching the vehicle in India.

He said the company expects to sell about 2,700 units this year compared to 1,658 units in 2009.

Asked if Audi India will start a used car business like its rivals, Mercedes-Benz and BMW, Perschke said: "Most probably from next year we will have the pre-owned car business. We already have it in Europe under 'Audi Plus' brand."

He said the company has not yet decided about the branding of the used-car business for India.

Audi India had earlier committed an investment of 30 million euros till 2015. It has already put in about 65 per cent of the amount.

"Every year we are exceeding our own expectations. If the market grows at this rate, then we see all reasons to revise our investment by 2012," Perschke said.

He said the luxury car market in India could cross the 12,000 units mark this year. With a target of about 2,700 units for this year, Audi's share would be about 25 per cent.

The company is also expanding its dealership network to about 20 by next year from the existing 14 outlets, he added.