Audi has begun assembling its A6 model in India to compete more effectively with rivals like Mercedes-Benz and BMW.
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The model is assembled from completely knocked down (CKD) kits imported from Germany in the VW group factory in Aurangabad in western India, where Skoda also builds cars, Reuters reported.
Audi will initially assemble about 300-400 units and can go up to 1,000 units a year, a spokeswoman told the news agency.
The first locally cars, which will be available in two petrol and two diesel engine variants, will be delivered next month. The reduced prices will range from INR3.9m to INR4.5m ($US99,000-$115,000).
The spokeswoman also told Reuters that Audi, which also imports the A4, A8 and TT models, has said it expects to sell around 3,000 cars by 2010, when passenger vehicle sales in India are forecast to top 2m units, and would consider assembling other models like the A4 if there is sufficient demand.
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By GlobalDataVolkswagen assembles the Passat sedan at Aurangabad and is spending $530m on a new plant near the western Pune city to make up to 110,000 vehicles a year from the second half of 2009.
VW also builds the Passat and A6 in China.
