The Volkswagen group is considering moving from CKD kit assembly to full production of some key Audi models in India, according to local reports.

The Economic Times suggested Audi was due to complete a feasibility study by early 2014 for the production of the A3 compact and the Q3 small SUV at Volkswagen’s Chakan plant in the state of Maharashtra.

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The plant also assembles VW and Skoda models.

Moving from CKD to full production would reduce local taxes but, for this to be feasible, Audi would need to export the vehicles to other markets to generate adequate economies of scale

The A3 shares its platform with the locally-built VW Vento and Skoda Rapid which would help increase economies of scale from the outset.

INDIA: VW sets up unit to export Vento, Polo kits

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