Audi to focus on electric vehicles in India: Rahil Ansari, head, Audi India
Rahil Ansari
took over as the head of
Audi India
last month and immediately announced his intention to reclaim the No. 1 spot in the market for luxury cars that it lost to Mercedes-Benz in 2016. The first Indian-origin head of the automaker in India, the 38-year-old is also the youngest brand director for Audi worldwide. Ansari talked to
Nabeel A Khan
on his India plans, including bringing in alternative fuel technologies.
Edited excerpts:
How does Audi view India?
India could be among the top 10 global markets for Audi within the next decade and we are also looking to double sales in the country in a faster time frame than earlier (plan of 10 years). Audi will also focus on alternative fuel technology, including electric vehicles, as it looks to bring environmentally sustainable mobility solutions to India.
Did Audi's move to cater to the smaller car segment help?
It is a great opportunity. With products like the A3 and Q3, we want to bring young people into the brand and retain them. When compared with our competitors, we have the youngest customer base in India, with an average age of 40 years. We have also seen a clear increase in demand for Audi products in tier-2 and tier-3 cities. (We are) seeing double-digit growth in these markets. However, tier-1 cities continue to contribute the larger share. The A3 and Q3 have added many new customers to the Audi family. These have not only expanded our customer base but also widened our product offering in terms of design, usage and price. Both these products contribute nearly 30% to our sales portfolio.
You said you want to be No 1. What are the top three key strategies in that direction?
The three important points are: the product, about which I have already talked about. Second is the network. Currently, we have over 94 touch points across the country, and will surely touch 100 by this year. Touch points include showrooms, workshops, and our used car showrooms. The third is a dynamic experience, where we go and interact with our customers; examples being the Audi mobile terminal (mobile showroom) and sports cars experience. In Audi mobile terminal, we go to tier-2 cities.
Out of the 10 product launches planned for this year, how many will be completely new?
We will have a good balance of refreshes and new ones. But, we will rock the market by entering a new segment we have never been to. We have launched the A3 (facelift); the A4 and A6 are already in the market. So there is definitely a gap, so we will create a new segment. We want to create desirability for a product. We are planning to introduce the Audi A5 family into the Indian portfolio.
Audi introduced petrol variants in sedans. When can we expect the same in Q5 and Q7 SUVs?
We have a clear strategy. Post the diesel ban (in the National Capital Region) last year, we are very well prepared. Moreover, the trend shows high demand and movement towards petrol cars.
How will the combination of petrol and diesel work for luxury segment as well as for Audi?
Both are equally important. Earlier, the amount of petrol was much lower, now it's increasing. The number before was around 10% petrol, what we now see is much higher. We expect this to increase to one-third of total vehicles to be petrol-fuelled. We get 30% of sales from SUVs and the rest from sedans.
What kind of strategy do you have for further localisation?
Currently, we have a wide range of localised content in our product portfolio, starting with the A3 sedan, A4, A6, Q3, Q5 and the Q7. So, we are planning to expand them.
What is going to be the impact of GST on the luxury car segment?
As of now, we are fine with the impact on us in general. GST is appreciated as it will reduce the complexity of tax structure. Currently, we are evaluating the impact on cost.
How does Audi view India?
India could be among the top 10 global markets for Audi within the next decade and we are also looking to double sales in the country in a faster time frame than earlier (plan of 10 years). Audi will also focus on alternative fuel technology, including electric vehicles, as it looks to bring environmentally sustainable mobility solutions to India.
Did Audi's move to cater to the smaller car segment help?
It is a great opportunity. With products like the A3 and Q3, we want to bring young people into the brand and retain them. When compared with our competitors, we have the youngest customer base in India, with an average age of 40 years. We have also seen a clear increase in demand for Audi products in tier-2 and tier-3 cities. (We are) seeing double-digit growth in these markets. However, tier-1 cities continue to contribute the larger share. The A3 and Q3 have added many new customers to the Audi family. These have not only expanded our customer base but also widened our product offering in terms of design, usage and price. Both these products contribute nearly 30% to our sales portfolio.
You said you want to be No 1. What are the top three key strategies in that direction?
The three important points are: the product, about which I have already talked about. Second is the network. Currently, we have over 94 touch points across the country, and will surely touch 100 by this year. Touch points include showrooms, workshops, and our used car showrooms. The third is a dynamic experience, where we go and interact with our customers; examples being the Audi mobile terminal (mobile showroom) and sports cars experience. In Audi mobile terminal, we go to tier-2 cities.
Out of the 10 product launches planned for this year, how many will be completely new?
We will have a good balance of refreshes and new ones. But, we will rock the market by entering a new segment we have never been to. We have launched the A3 (facelift); the A4 and A6 are already in the market. So there is definitely a gap, so we will create a new segment. We want to create desirability for a product. We are planning to introduce the Audi A5 family into the Indian portfolio.
Audi introduced petrol variants in sedans. When can we expect the same in Q5 and Q7 SUVs?
We have a clear strategy. Post the diesel ban (in the National Capital Region) last year, we are very well prepared. Moreover, the trend shows high demand and movement towards petrol cars.
How will the combination of petrol and diesel work for luxury segment as well as for Audi?
Both are equally important. Earlier, the amount of petrol was much lower, now it's increasing. The number before was around 10% petrol, what we now see is much higher. We expect this to increase to one-third of total vehicles to be petrol-fuelled. We get 30% of sales from SUVs and the rest from sedans.
What kind of strategy do you have for further localisation?
Currently, we have a wide range of localised content in our product portfolio, starting with the A3 sedan, A4, A6, Q3, Q5 and the Q7. So, we are planning to expand them.
What is going to be the impact of GST on the luxury car segment?
As of now, we are fine with the impact on us in general. GST is appreciated as it will reduce the complexity of tax structure. Currently, we are evaluating the impact on cost.
