Luxury car-maker Audi India says it has a lot a more to offer the country in 2015, and is hopeful that it would be yet another better year for the company. On Thursday, the company launched its compact convertible, sporty A3 Cabriolet, priced at Rs 44.75 lakh (ex-showroom New Delhi), powered by 1.8 TFSI petrol engine (1798cc) with seven-speed S-tronic transmission and 180hp. The car has a top speed of 240kmph and can go from 0-100kmph in 7.8 seconds. This is the second A3 model that the company has launched in the series after its A3 sedan in August this year. Joe King, Head, Audi India, shares the company’s plans and strategies in an interview with Business Line. Edited excerpts:

What are your expectations from the latest car? Isn’t the price high?

Cabriolet will be perfect for the young and ambitious generation which enjoys luxury cars. It is right priced with new technologies. We are value-sensitive and I think, at the end of the day, India is a fun-loving country. People work hard and party hard. A car like this is not only about status, but also a lot about love of such cars. We have had a similar experience with the A6, A4 and the A3 sedans.

How is the A3 sedan doing?

Since its launch in August, we have sold more than 1,000 units. We have got a lot more production lined up for next year. There is a waiting period for some models, which should come down soon.

What is your manufacturing plan and what will be your contribution to the Prime Minister’s ‘Make in India’ plan?

We are currently making around 10,000 cars at the Aurangabad plant. We are in discussions to further local manufacturing of more cars as we are committed to the Indian market. India is the second market after China in Asia where we are the leader in the luxury car segment. We have strong plans for further investments in India. The government’s ‘Make in India’ plan gives us a lot of security from the long-term perspective. In the short term, we expect the government to continue with excise duty cuts as the industry is not yet on the growth path.

What is the capacity utilisation at your plant right now?

We are working on one shift right now and there is capacity to manufacture around 14,000 units (a year). We can make more cars in two shifts, when demand rises.

You have sold 10,000 units till November. What numbers are you looking at this year?

We will maintain the position of number one. We are on track and have already achieved last year’s numbers (10,000 units) in November itself. We are ready to move into another year of growth next year.

Would you term this year as the best in terms of numbers?

Yes. This is the best year for us in India, and this is a year when the luxury car market is flat (growth of only 1 per cent). It is because we had the right strategy, by expanding product portfolio with the customer in mind at the right time. We expanded our network to 40 dealers, covering more cities, including tier-II and tier-III. We will add a couple of dealers next year. We also invested on manpower with more training programmes.

What are your product plans for next year?

Newer models will come next year. It will be a balanced portfolio, including ‘all-new’ products and upgraded versions of the existing models. We will launch more than 10 products (from five launches this year) next year.

With competitors closing in from BMW and Mercedes, how do you plan to maintain numero uno position?

It was harder to get there (at number one) and maintain the position. But, from our point of view, we have been clear that competition can do whatever they like, but there is only one strategy that we follow, which is to maintain sustainable/ profitable growth by launching products as per customer demand, and at a right price.

Did the recall of 6,758 units of A4 sedan last month see any negative impact?

I don’t see any negative impact. We are safety conscious, we review the cars, and if there is any form of defect, we take pro-active steps. These cars are very complicated machines. It was just a software upgrade of the airbag and we solved that problem.

You are selling products at ex-showroom prices. Is it profitable or is it just to gain numbers?

That is something customers were looking for, and also, December is a month of opportunities. As the market is also fairly flat, there is a lot of aggression in the market. Therefore, we also need to protect our customer base. We have loyalty programmes for our customers and such deals allow them to come back to us. And, we are pretty profitable in doing so.

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