Audi is thinking about assembling engines in India as it plans to increase its footprint in the country. CEO Ruper Stadler said: "The Indian market is developing very well. Now, we also have political stability.

"The growth will not only be double-digit but there will be premium business for 30,000 to 50,000 cars a year and Audi is investing in India. We are investigating the possibility for engines, though the market is still not mature enough."

Parent firm Volkswagen is considering setting up a development centre in the country. Development head Heinz-Jakob Neusser said, "We would prefer the development department to be close to the factory so that it can work together in production planning. We have a centre in India and they undertake special work for India with localisation and concepts".

The company is expected to present a compact sedan for India at the Auto Expo in January 2016, ET reported.