Audi Starts Production in India

 Audi Starts Production in India
Audi A6 assembly in India

Audi A6 to be followed by new A4 in 2008

New A4 to follow in late 2008

To say that India is a growth market is an understatement, to underline India's importance Audi has today started local production of its A6 midsize sedan for the Indian market. By 2015, Audi hopes to see 2,000 units roll off the production line and will have invested over Euro 30 million by that time. The new Audi A4 will also be built at the Aurangabad site starting late 2008. Audi aims to build 300 A6's in 2008.

“Starting our own production there is the best way to adequately serve such a promising growth market like India,” said Rupert Stadler, Chairman of the Board of Management of AUDI AG. Audi has sectioned off part of the SAIPL group plant at Aurangabad in the state of Maharashtra. The Indian plant is the second production site in Asia for Audi, the first is in Changun, China.

Audi has been in India for three years now, but has only imported vehicles like the Audi A4, Audi A8, Audi Q7 and Audi TT to the country. Audi sees India as vital in its Strategy 2015, which aims to sell 1.5 million cars globally by 2015.

Source: Audi

Audi production successfully launched in India

  • Indian market vital to Audi’s growth strategy
  • First locally assembled Audi A6 cars received by Indian customers
  • Audi to invest around 30 million euros by 2015
  • Assembly of the new Audi A4 to follow starting in late 2008

Audi continues to make its mark in India’s flourishing growth market: the company with the four rings has now successfully started production for the Indian market of the world’s most successful luxury midsize sedan – the Audi A6 – at its Aurangabad site in the state of Maharashtra. By 2015, when more than 2,000 units of the A6 should be rolling off the line, Audi will have invested more than 30 million euros in production alone in India. Starting in late 2008, the new Audi A4 will also be assembled locally.

With this step Audi is continuing the company’s worldwide success story and growth trend, and is making a long-term investment in one of the world’s most promising automotive markets. “Starting our own production there is the best way to adequately serve such a promising growth market like India,” said Rupert Stadler, Chairman of the Board of Management of AUDI AG. “India is one of the components of our Strategy 2015, which aims to achieve sales of 1.5 million automobiles per year worldwide. We want to be the most successful premium brand in India as well.”

The carmaker has set up an exclusive assembly line on the premises of the group production facility in Aurangabad for production of the Audi A6. Here Audi consistently relies on the company’s high worldwide standards.

Cutting-edge technology and highly skilled employees are the key to efficient production: the Indian team has been intensively prepared for their jobs with extensive training at the Audi plant in Neckarsulm.

In selecting the location for Audi in India, the group plant for SAIPL (Skoda Auto India Private Limited) in Aurangabad provided several decisive advantages. “Audi benefits from an outstanding infrastructure, highly developed working processes, a large pool of skilled workers and favorable logistical conditions,” said Frank Dreves, Member of the Board of Management at AUDI AG for Production.

He clearly indicates the standards applied at Audi’s second automotive production plant in Asia (after Changchun in China). “Top quality is a worldwide standard for Audi,” Dreves said. “It’s ‘Made by Audi,’ to put it simply. A highly skilled and motivated team of employees there also helps ensure this quality.”

There are currently 35 employees working in Aurangabad on the Audi production line, in quality assurance and in logistics. In 2008, more than 300 A6 sedans will be assembled in single-shift operation. The Audi A6 is intended exclusively for the Indian market.

As well as exclusive Audi production, consistent development and expansion of the sales and dealership structure are also key factors in the company’s growing presence on the Indian market. Audi has been successfully represented on this market for about three years now. In the spring of this year Audi established a sales subsidiary, headquartered in Mumbai. All market activities in India are managed from here. Audi also imports models such as the Audi A4, Audi A8, Audi Q7 and Audi TT. 

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 radmeister radmeister
300 A6's in 1 year? that has to be the worst productivity and return on investment i have ever heard of. Are they building these cars with hammers and chissels from a raw block of aluminum?
January 3, 2008 9:15 am
 radmeister radmeister
Oh and thank god they are only for the indian market. If i paid 70,000$ for an A6 and the door sticker said Made in India i wouldnt take it from the dealer, no thanks i'll wait till you bring me a german one.
January 3, 2008 9:16 am
 xenomorph xenomorph
I absolutely agree, I wouldn't touch it if it was made in India either.
January 6, 2008 9:17 am
 heinz heinz
if they are only making 300 A6's why don't they make a few R8's to make money because they also said they are going to invest 10.6 billion so it's a waste of money making cars in india, because who's going to buy them.
January 3, 2008 9:22 am
 Dev Dev
Hi, For the above 3 posters without offence firstly, Im from india and now the clear picture. 1. They are investing only 30 Million in India till the year 2015 2. They have been selling cars as imports since 3 years and since that attracts about 127% Import duty they only plan to assemble these units not really make them here. It's more like the entire thing comes ready made and they just attach a few bits including seats / wheels / doors etc it isnt really made in India 4. They do sell other audi's / luxury cars and they sell quite a few we've had 10+ Rolls Royce Phantoms sold in India last year and while we are a country that is still in it's infant stages you will see how we are till 2015. And finally Audi is investing peanuts compared to Mercedes or BMW who already have a huge plant up and running and Mercedes is building a second plant and not too sure but I believe since last 4 years India is the only country outside Germany where the S class is made and believe me you might want to check the cars out you will be hard shocked at how good they are. All AUDI has done till now is opened a few dealers and closed a few and re opened a few and even this production is done at their existing SKODA plant it's not entirely a new plant that they have invested in Sorry for this long note just thought i'd enlighten :)
January 3, 2008 11:33 am
 shifty shifty
nice comment! Finally someone who talks about facts ;)
January 3, 2008 12:16 pm
 radmeister radmeister
Oh i am sure that india is an economically and financially growing country dont get me wrong. It comes down to how much faith i have in indian made products quality wise, i'm sure they are decent but not 70,000$ decent. And even if they were the exact same quality as german made vehicles i am european and much rather give $ back to my economy than india. No offence but thats just the way i see it.
January 3, 2008 12:20 pm
 Dev Dev
Hi, i'll give you some information which I'm not 100% accurate on but a lot of internal parts in Mercedes including a lot of software is outsourced from India. I know a lot of rubber parts are made in a factory in north India and a few others. But Yes you are absolutely correct MADE IN GERMANY is significant to quality and we absolutely adore it in India. Infact that is the reason why Mercedes / BMW / Audi dont atchually manufacture here it's only the assembly line so it atchually is more like you will see a label which says ASSEMBLED IN INDIA rather then made in india :) And 100% agree with you on the comment about giving money back to your own country :) wish we had more people in my country who thought like you. I just gave the above post to let you know how much European quality means in India it's #1 on our lists :) I mean it and believe me we'll never try to 1up it all we'd do is tackle a way around in which the 70,000 USD price tag can be bought down to a realistic level by changing a few basics and it ends up making a huge difference. Once again no offence to anyone :)
January 3, 2008 1:12 pm
 buozgs01 buozgs01
I am realy jealous of this invesment to your coutry. Congratulations..
January 3, 2008 5:16 pm
 buozgs01 buozgs01
"country"
January 3, 2008 5:16 pm
 Straiyan Straiyan
Dude's right, they're ONLY assembled in India.
January 13, 2008 4:45 pm
 wolff wolff
Mercedes Benz's plant in Pune, India has been winning their presitious award of best assembly unit outside Germany for the past 4 years continuesly!! i guess that should speak enough of India's progress in building 70,000$ cars!! 8) n i guess why u guys have such a biase against India!! :O i wont blanme u guys as a whole, ur media always shows us an impoverished country!! n please.. in the future, please dont be surprised, if India is known as the world IT hub or world auto hub.. coz, now we r here to stay!! 8)
January 3, 2008 2:07 pm
 Straiyan Straiyan
You're not building $70,000 cars man, you're only assembling them and exporting like 99% of the finished product.
January 13, 2008 4:53 pm
 Bakgat Bakgat
Mercedes Benz also assembles their C class vehicles in South Africa, where costs can be cut quite dramaticaly...cheaper labour as I'm sure we're all aware. These vehicles then get exported to Australasia and other parts of Africa, not to mention South Africa itself. They are simply assembled and not manufatured in these countries and are still run by Germany, ie. German staff and regulations, other than the labour. Hope this makes sense? :-)
January 4, 2008 12:03 am
 Ferrariguy Ferrariguy
That's awesome, funny I don't hear some people complaining that a lot of VW's are assembled in Mexico. =) Anyways, that's great news in a way and a little off topic, but I'm kind of glad that Tata bought Land Rover and Jaguar off of Ford. Hopefully now they can return to glory or atleast up the reliability and quality in their cars. I have faith in the India based company.
January 4, 2008 10:15 am
 Scuderia Scuderia
Well I see no point in this arguement. Its quite futile. India is an emerging economy and it will hopefully see much more growth in the future. As far as I see this, this is only the beginning. Most of the luxury/non lux car brands, in the next few years will shift their manufacturing hubs to India and China due the availability of cheap and skilled labor. So everyone would have no choice but to pump their money back to India and China.
January 4, 2008 4:48 pm
 radmeister radmeister
I doubt it, there are reasons why the EU was formed and NAFTA. Duties would be enourmous on vehicles manufactured/assembled outside those regions in order to protect the internal economy. If you think the US is going to let cars made in china come in without massive duties to bring them to the same price or higher price than cars made within the states you are dreaming. Cars made within India and China will stay in Asia and perhaps Africa because export and dutie fees will kill them in Europe and N/A.
January 4, 2008 6:13 pm
 Scuderia Scuderia
True, but thats in the near future. However later it will be a different story. With the changing demographics, in the future the EU and North America will have much fewer people able to work due to population ageing/greying. The median age in the US is 35.3 years old & EU's is 37.7 years old and this will shift to a whopping 52.3 years old in 2040 where as India and China are at an advantage with a young and talented population. The median age being 24-25 years old. Ultimately a large number of processes will have to be outsourced to India and China.
January 5, 2008 7:14 am
 arkan arkan
I wouldn't buy an AUDI if it came from India. I hope they don't plan on exporting it to other countries because it would really affect its prestige. No offense to anyone here from India.
January 5, 2008 5:18 pm
 Scuderia Scuderia
They are just being assembled in India. The parts are from Germany.
January 6, 2008 5:07 am
 unknown unknown
there are vw's, bmw's and mercedes that are built in china and vietnam for their own market, but even their own people perfer to buy cars built in germany.
January 6, 2008 10:54 pm
So how long it would take to start manufacturing in India itself instead of just assembling?
September 18, 2009 8:32 am