Audi is to assemble the A3 sedan at its Aurangabad plant in India with sales starting this summer.
The model line is also being produced in China where the hatchback is on sale now with the sedan – to be called Limousine there – to follow.
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The Volkswagen group premium brand sees the A3 as a driver for sales growth in India which CEO Rupert Stadler described as a “strategically important market” for the company with huge growth potential for the luxury car segment.
Stadler said the company was struggling with depreciation of the Indian rupee and was looking forward to economic reforms, particularly in the taxation system, by the new government after the parliamentary election.
Audi India reported 11% year on year growth in 2013 sales to 10,002 units in India, up from 9,003 in 2012.
Audi started local assembly in September 2007 with the A6 and currently produces the A4, Q5, new A6, Q7 and Q3 at Aurangabad. Over 24,000 cars have been produced in the factory in Maharashtra state since the start of production.
Stadler said sales growth in India “depends on certain framework. First of all we would like to listen to the new political regime. We would like to see how the economy gets back to the next growth pattern.”
He added he was looking for structural reforms in the India economy, including policy initiatives in the financial sector.
