BUSINESS

Audi to bring in TT Coupe, Allroad Quattro

By Santanu Choudhury in New Delhi
March 03, 2004 10:10 IST

Audi AG, the German carmaker, will enter India with its top-selling A4 car, TT Coupe sports and Allroad Quattro sports passenger vehicle.

The company will import these vehicles in the next two months for homologation to local driving conditions by the Pune-based Automotive Research Association of India.

"We want to make a beginning with three dealers in Delhi, Mumbai and Bangalore," a senior Audi official told Business Standard.

He added that other cars like the A8 would also be considered for introduction depending on the initial response. The exact time of launch would be decided after the homologation.

The company will, however, not have any immediate operational synergy with sister concern SkodaAuto, like sharing of assembly lines.

"We want to be identified as a brand of our own. So, at the moment, we want to gauge the response and get some experience before we decide on any synergy with SkodaAuto for assembly production," the official said.

Audi's entry will increase competition in the luxury car market, which has the presence of bigwigs like DaimlerChrysler, Hyundai, Ford, General Motors, Toyota and Honda.

Other car makers such as BMW, Nissan and Volkswagen have also announced plans to set up operations in the country in view of growing sales. BMW has said that it was in talks with local companies to initially market and later assemble and sell the 3, 5 and 7 Series range.

To begin with, Audi will feed the Indian market with imports. Once its sales in the country hit critical mass, it could look at assembling these vehicles locally.

The Audi A4 is available in three different models -- sedan, stationwagon and cabriolet. The vehicle is powered by a 1.8-litre, 170 horse power engine, while the rugged Allroad Quattro has a 2.7-litre V6 engine delivering 250 HP. The sporty TT Coupe has a 3.2 litre engine with 250HP.

The Audi official said the TT Coupe, which was showcased at the Auto Expo 2004, was expected to be launched after the A4 and Allroad Quattro because it was a niche car for young people, unlike the other models.

India's car market, Asia's fourth-largest, grew 19 per cent to 6,50,000 in 2003 from 5,45,000 the year before. Growth was largely in the compact and mid-sized car segments, which is dominated by Maruti Udyog, Hyundai and Tata Motors. The market for luxury cars has been estimated at 25,000 units annually.
Santanu Choudhury in New Delhi

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