[TusharK]

As we have reported earlier, Audi has dropped from the no. 1 position in terms of sales among luxury carmakers in India at the end of CY 2014 to no. 3 at the end of CY 2017 (click here to read report). Now, according to a media report, the German company is looking to change its product strategy. The company plans to invest in the volumes segment of the luxury car market and could target the Rs. 22 lakh - Rs. 25 lakh price bracket. With this move, it hopes to increase its customer base and volumes in a bid to try and regain the top spot in the luxury segment.



According to the report, Audi is planning to launch products below the A3 sedan and Q3 SUV in the next 2-3 years. The products to be introduced, are likely to include at least one model each of an SUV, sedan and hatchback. While, no specific models have been mentioned, it is rumoured that the Q2 could offered in India in the future.

In terms of sales volumes, Mercedes-Benz is currently leading with BMW and Audi in second and third places respectively. Mercedes-Benz is also the only premium automaker offering hatchbacks in India.

The introduction of GST has had an adverse effect on the luxury segment in India. Despite the unfavourable tax structure, Mercedes-Benz managed to register a growth of 22% in 2017, while Audi saw a sales growth of 2%.

Source: ET Auto

Link to Team-BHP News

[AnInternetUser]

I remember a thread on premium car sales analysis where we were discussing what Audi could do to improve their standing. Sahil rightly said that cars like the new A8 or A6 might not help since they won't increase volume. Well, if priced right, these might help.

Maybe the cheapest Audi (A1, I would assume) could be priced in the mid 20s. While it would still be pretty expensive for the amount of space it offers, it could be a good option for someone looking to get a supermini and enter the brand (or enjoy the snob factor).

I wish sportier models like the RS3 (competing with the CLA45) or S1 (competing with the Cooper S JCW) are on the cards! Unlikely, but one can hope.

[anshumandun]

Mercedes is killing it by new launches and their new design language. All their cars look so refreshing inside and out. In the past few years, they've gone from an old man's luxury car to an exciting bold design language that has attracted a lot of young people.

BMW has it's own dedicated fan base because of their "sheer driving pleasure". Enthusiasts who have the money will most probably stick to BMW than look around anywhere else. In fact, if BMW decides to follow this strategy of launching new enthusiast cars at lower price points ( 1 series hatch and sedan), they can attract a lot of young people to buy their cars.

Audi is neither here or there. Their cars are made for people who prefer to be driven around. When I sometimes get to drive my dad's Q3, I enjoy it for sometime but then the drive gets boring. The car is just too easy to drive. So easy that it just sucks out the fun factor. My GT TSI feels more fun to drive although it has much less power than the Q3.

Also, the fact that Audi is owned by VW which means that the engines are shared with VW and Skoda cars doesn't help. If one thinks practically, it won't hurt to buy a Superb/Passat than the A4 or A6. Even the Kodiaq is a more practical choice than the Q3.

Audi needs to build an individual brand identity for themselves to fight out the competition. Will launching cheaper cars help? Only time will tell.

Originally Posted by TusharK

Mercedes-Benz is also the only premium automaker offering hatchbacks in India.

Volvo V40 is another hot looking hatch from a premium automaker.

[GTO]

It'll be interesting to see just how "low" a luxury brand can go. And it's not easy. The A3 hardly stands for motoring excellence, is small and has a cramped backseat. What makes it worse is that it has a sibling (Octavia) which offers more at a lower price. BMW's effort with the 1-Series in India was also a big failure. Mercedes, however, has handled it well. The A-Class & CLA both look smashing & have nice interiors.

Originally Posted by TusharK

an SUV, sedan and hatchback

An SUV smaller than the Q3 - the Q3 is anyway comparable to the Creta. A sedan smaller than the already compact A3? Am not optimistic about acceptability in the market.

A premium hatchback - like the A-Class - could have some potential, but it'll still be limited.

The biggest challenge for these guys is that cars from regular manufacturers in the 15 - 30 lakh space have gotten so darn good. They can't offer less than them, and just count on the badge to bring customers in. The Endeavour & Fortuner have comparable pricing to the Q3 - guess who sells more? Heck, even in the lower segments, the Yaris is offering 7 airbags while the Verna has cooled seats!

[volkman10]

Originally Posted by GTO

An SUV smaller than the Q3 - the Q3 is anyway comparable to the Creta. --

Could be the C/SUV Q2 that can be compared to i20 Active and the smallest Q1 which will be equivalent to Vitara Brezza.

Pricing to be Premium to match the logo

[itsmb]

Audi needs to build an individual brand identity for themselves to fight out the competition. Will launching cheaper cars help? Only time will tell.

I genuinely hope that guys at Audi are reading your input, launching cheaper cars will deteriorate the brand Audi further. Cheap cars = cheap interiors, cheap quality and cheap parts. As far as my mind works Skoda/VW = Cheap Luxury (comparing with three big Germans). Audi needs to work on branding, not cheaper cars. Competition is fierce and ever-evolving and we do not want Skoda to take over Audi in terms of quality.

Happy Motoring

[ashis89]

I have traveled in my uncle's Q3 on a few occasions. Apart from some good "pushed into the seat feeling", I don't like it at all for being so cramped. I always prefer his old Pajero or his new Endeavour over the Q3 irrespective of whether I am in the front seats or the back seat. Premium hatches like Baleno or Jazz was much better than the car.

Me and my uncle are 6ft tall. We do the following routine:
1. Take the front seat of Q3 and adjust the leg space by pushing the seat back.
or
2. Take the back seat and ask the front seats to be pushed ahead.
or
3. Prefer the Endy.

Anything smaller and I might have to compare it with the i10. Or Audi might reduce the boot space while keeping the wheelbase the same. It will also seriously dilute the Audi brand.

[The Rationalist]

I feel this move will cost Audi dearly, they are trying to chase numbers by climbing down the ladder! The people who stick to the lesser priced cars are not just some dumb guys , they do evaluate properly about the pros and cons. Just because the German trio is available won't make most jump and buy them. I do agree , few impulsive guys would be there, but that won't make any big impact. Who will buy a sedan below A3 , which itself isn't anything to talk about.

Audi has to make some design changes , they all look too similar and boring now. It's been too long in the tooth, how long do you expect people to get excited seeing same design for almost a decade! India needs a premium hatch, say something which is practical similar to Golf . Heck, I can't think of a premium hatch that costs between 20-30 lakhs! That could be a nice start. Not everyone wants a sedan or SUV.

[GTO]

Originally Posted by The Rationalist

they are trying to chase numbers by climbing down the ladder!

Which is weird because it already has two powerful siblings in the lower segments (VW & Skoda). It's like me applying for a job at Deloitte (where my sister works) or starting a new education business (my bro & other sister). Weird.

The more I'm reading this discussion, the more I'm convinced that Audi certainly cannot go smaller than an A3 or Q3 in India. These cars are anyway cramped. If Audi India wants growth, it's going to have to look at the 25 - 80 lakh space. How about an A6 that can actually compete with the E-Class & 5-Series? Or an A4 that looks different from its predecessor? To the layman, the new A4 is indistinguishable from the older one. You can't be so lazy at a time when Mercedes is killing the market with its snazzy, classy, breath-taking designs.

Or Audi can be the first-to-market with some game-changing technology (EVs etc.).

P.S. If all else fails, Audi can always do what it has done better than Mercedes & BMW = DISCOUNTS.

[avira_tk]

I think that Audi can manage to bring in the Q2 because the Q3 is at the end of its current generation, the new one will compete with the X1 and the Q2 can take on the GLA / X2.

The sedan below the A3 can only be a scale model, I'm pretty sure luxury buyers don't aspire to sub 4m sedans with 3 cylinder engines.

[reignofchaos]

Personally, I'd love to have an A1 with the new efficient 1.5 TSi as a Polo replacement city runabout.

There's absolutely no need for anything bigger for my daily driving needs where it is just me and my wife in the car.

[The Brutailer]

Contrary to the popular opinion, I think it might just sell. Why? Because brand value. We Indians tend to give the brand more importance than the actual product (atleast 90% of the time). Non-informed, general public might just go for an entry level Audi while they are shopping for the likes of top variant Compass and such.

Originally Posted by GTO

It'll be interesting to see just how "low" a luxury brand can go. And it's not easy. The A3 hardly stands for motoring excellence, is small and has a cramped backseat. What makes it worse is that it has a sibling (Octavia) which offers more at a lower price.

An SUV smaller than the Q3 - the Q3 is anyway comparable to the Creta. A sedan smaller than the already compact A3? Am not optimistic about acceptability in the market.

Haha, days aren’t too far away for Compact (sub 4m) SUVs and Sedans from Audi and likes eh?

[avishar]

I honestly find the Q2 to be very unappealing. I have seen a number of them on roads in Germany, and they are TINY! Audi can use as many 3D rendered backgrounds it can to make it look big, but they are puny in real life. And unless you buy the top-spec model with nice alloys, contrasting body panels and snazzy headlights, you will be driving around in something that really a "cross" version of a hatchback. I cannot understand why would anyone spend 30 lakh on-road for something that is the size of a Vitara Brezza (It is actually shorter in height, than one).

LxBxH

Audi Q2 : 4,191 mm L x 1,794 mm W x 1,508 mm

Vitara Brezza: 3,995 mm x 1,790 mm x 1,640 mm

[A M]

I feel VW AG is losing the plot as a whole in India. No matter what they try, their laziness has cost them dearly and will continue to do so for a couple of years more, if they don't wake up out of their slumber.

1. Decade-long product lifecycles and no new launches for another three years. The only saving grace for Skoda is the new Octavia.

2. Optimistic pricing - Tiguan, Polo GTI.

3. Downsizing the engines - 1.0 L in Polo and 1.4L in A4

As a brand, Audi needs to find one core value and stick by it. They are neither as exciting to drive as a BMW nor are as comfortable as a Mercedes. As far as the looks go, the decade-old designs show their age. They need to move away from their evolutionary design language and do something revolutionary. Bringing cheaper products will only dilute the brand further and whatever customers they have for the A8 will also start to shy away from them. There is already a lot of parts sharing between VW, Skoda, and Audi which is not good for their image. There will be inevitable comparisons between the cheaper Audis and their VW or Skoda siblings and Audi will get a double whammy - VFM factor and brand image.

They should seriously give this decision a second thought.

[gkveda]

On a lighter side, Audi may be targeting people who prefers to own Premium luxury cars with Lack of space as compared to value for money cars with decent space.

And believe me, there are people who satisfy the above behavior. They are ready to shell out money for such premium Cars.

For them, Cramped space in luxury car is far more superior compared to generous space in value for money cars