Interview with Joe King,Head, Audi India

Report: P. Tharyan, Photography: Mohd. Nasir

Company Description: Audi is represented in 110 countries worldwide and since 2004, Audi has been selling its products in the Indian market.  In March 2007, Audi set up its own sales company for India. It established Audi India as a Division of Volkswagen Group Sales India Pvt. Ltd. in Mumbai. As a manufacturer of high-quality and innovative luxury cars, Audi is one of the world’s leading premium brands and is among the most admired on the world market.

Audi’s goal is to become the leading automobile luxury brand in the Indian market in the next few years. At present Audi is assembling the Audi A6, Audi A4, Audi Q3, Audi Q5 and Audi Q7 for the Indian market in Aurangabad.

Congratulations to the Audi team for winning the World Car of the Year title for the A3 model. How elated are you and when is this car headed for India?

We always thought this would be a game changer and I think that just goes to prove how much of a game changer it will be. Winning any award such as this is just phenomenal, I think, it bodes pretty well when our car arrives here midyear. It’s coming.  It will be the first model that will be produced from day one from our Aurangabad facility. So it’s our first model that will be produced here from Day One and we are thrilled with that.

Audi India has been scaling new heights in sales of luxury vehicles in India. Has this come as a pleasant surprise to you?

We are a company driven by success, we are the only 2nd country in Asia to be number 1, so we don’t take it lightly, its often harder to hold than it is to get there but we think we have got the right plans in place, we have the right product for the consumer and the A3 will be another model that proves that. So we’re in really good shape for the future as well so, very happy with the way it’s going.

You hope that you will be able to continue with this trend in the years to come?

We are looking for profitable and sustainable growth; I think the used car facility is another big milestone in the whole story in India it’s a really important thing, it will help support our really high resale values and opens up a whole new market for us as well. And so in combination with A3, the future looks really bright.

What are your views on the future of the luxury car segment as a whole in India?

I think it’s absolutely going to grow, but I think for any emerging market, generally its volatile, I think the pleasing thing we see here is very good steady growth. It helps you plan better, helps you make a good solid business model and that’s something that we are doing. So we see a wonderful future for India.

What are your expectations from the new government after the general elections?

There are a lot of people out there who are far more qualified to answer that because I have been here for just a while. In general you would look for stability. Stability in policy making that’s what any business would look for.

You have new cars here, and also used cars here in India. Is there a demand for such used luxury cars?

I think it’s not measured. We see a huge potential to grow even faster than the current new car markets. So I think there is an incredible thirst for luxury in this country, the used cars opens up a whole new segment for us. That also helps us keep our customers loyal, as they get a better resale value, so they can upgrade earlier. This also fuels the new car business as well.

In your used car business, will you be selling cars that are just a year or so old?

In reality we have only been in the country for six years, so we have grown very rapidly so to take the number one position and sell 10,000 cars and be the first to do so, I guess our whole car parc is quite young. I think in time you will see it will expand even further.

It’s a fact that cars like Audi are bought by the well-heeled. But who buys the used cars from Audi, are they also the well-heeled?

I think it’s a very broad market, I think even when you look at Audi, in general the Indian consumer is one that looks for value.  I think that’s been the key to our success, we have been providing a lot of value. We see a lot of people jump quite a few price bands if you like, to come into A4 and Q3.  We brought in the Q3S in the manual transmission and that’s done phenomenally well, and now the A3 will be another huge model for us. I think the used cars just opens up the whole value proposition also for who maybe don’t want to buy a new car, but would want real value and luxury. That’s what you can get now in used cars.

Is it fair to assume that a used car from Audi will be a rich man’s second car?

In general you will find people who really prefer to buy new, and people who prefer to buy used. So I think that’s my experience around the world, and that why I think this will open a market for those people who want and aspire to drive an Audi. But they may be seeing a great value in buying a great quality be it new, or an approved used car and that opens up a whole new segment to us.