Audi India plans local electric car production to double market share

Audi India is looking into making electric cars inside the country to help double its share of the luxury car market over the next three to five years. Balbir Singh Dhillon, the brand director for Audi India, stated that a final choice on local battery electric vehicle production will arrive in the coming months.

Strategy

The company is using a three-part plan to hit its target of raising its luxury market share from about eight percent up to fifteen or sixteen percent. This plan involves focusing on customer needs, launching new products, and growing the dealer network. Audi also plans to widen its footprint by setting up new showrooms and entering tier-two and tier-three towns.

Context

Automakers often weigh local manufacturing once demand for a type of vehicle grows large enough to make local assembly cheaper than importing built units. Free trade agreements between nations can also change how companies test new vehicle models and plan their future supply chains.