Q. How has been the first quarter of 2023 for Audi India? Which are your best-sellingmodels and what is their contribution to the total volumes?
We have witnessed 126% growth in Q1 2023 compared to the same quarter last year. Currently, we have the strongest-ever SUV portfolio and the recent launches like the Audi Q3 and Audi Q3 Sportback, and the existing strong models like Audi Q5, Audi Q7 and Audi Q8 have helped our share of SUV sales reach 60%. We are seeing continued demand for sports cars: Audi RS e-tron GT, Audi e-tron GT, Audi RS5 Sportback, Audi S5 Sportback and sedans, Audi A4, Audi A6, and Audi A8 L. Audi Approved: plus, our pre-owned car business, grew 50% – the highest sales ever in a quarter.
We are on a growth path and are confident of this growth to continue in the coming months.
Q. What kind of progress do you see in the next nine months?
There is continued, strong demand for our entire product portfolio. We continue to grow month-on-month and are looking to close 2023 with a high double-digit growth. The new technology-rich products, a new electric launch this year in quarter three (Q8 e-tron), high disposable incomes with the consumers and the upcoming festive season will help our growth this year. We hope to meet the continuing demand for luxury cars, in spite of the ongoing semiconductor chip shortages and supply chain issues. In 2023, we expect the luxury car segment to exceed the 2018 record volumes by a significant margin.
Q. Please share a break-up of SUVs and Sedans in the total volume of Audi India for the past 3-5 years.
Typically, the share every year has been 50-50 for sedans and SUVs. In Q1 2023, SUVs accounted for 60% of our sales supported by our strongest-ever SUV portfolio.
Q. What strategy does Audi India follow to onboard the first-time luxury car buyers?
Beyond introducing new products to the Indian market, Audi India has focuses on expanding its retail business and establishing new showrooms across the country, including the tier-II and tier-III cities.
Q. Can you share the volume break-up between urban and tier-II and tier-III cities? How have tier-II and III cities grown in the past few years?
Growing demand from tier-II and tier-III cities has provided an impetus for several luxury car makers in India to explore the segment and provide the best products and services. There is also a significant market for pre-owned luxury cars in these regions. In recent times, we have witnessed strong demand for our cars from tier-II and tier-III cities and approximately 40% of our sales have come from them.
Q. Do you identify any new set of customers who are now buying luxury cars in India? What kind of customer trends have you spotted in the past few years in the luxury space?
More young people, especially in the category of startup owners and young professionals, are keen on experiencing luxury at an early age. They have both the desire and means for it. From the Audi A4, which is our entry-level sedan, right up to the RS e-tron GT, which is our top-end electric car that costs upwards of INR 2 crore, we have seen a rise in first-generation buyers over the past two years. There is a rise in customers wanting to personalize ad customize their cars. The kind of customization that Audi India has seen includes customized alloy wheels, seats, seat belts, inlays, exterior colours, cool box and others.
For example, in the new Audi A8 L, people can get their car customized from 55 exterior colours, eight interior colours, and seven wooden inlays, enabling an array of personalization options. The electric vehicles – RS e-tron GT and e-tron – have seen some young buyers in the age group of 35-40 years . While the large share is of men, there are also women e- tron customers.
Our share of women buyers has gone up from 4% to 11% in the last 3 years (including ICE). We garner about 40% of our sales from buyers below 40 – this is for the Audi product portfolio in India
Q. Please share your expansion plans in terms of your reach and new product launches.
We will launch Audi Q8 e-tron in quarter three this year. All other launches and timelines will be revealed in due course. In terms of retail expansion, we are opening a new dealership in Raipur this week and will continue to expand our Audi Approved: plus facilities this year.
Q.How has the response to electric vehicles been in the luxury car market? What is the current contribution of EVs to your product portfolio? What are your targets for the next three years?
We can proudly say that all our five electric vehicles, the Audi e-tron 50, Audi e-tron 55, Audi e-tron Sportback 55, Audi e-tron GT and Audi RS e-tron GT, have received an overwhelming response. We currently have a strong order bank for the e-tron range; this tells you that there is strong demand for luxury electric cars and customers who know the merits of going electric are not hesitating to make the shift.
Audi India has seen a sturdy demand for its e-tron brand and there is a significant EV momentum as consumer perceptions about the viability of electric vehicles are improving. The response to our electric cars is very encouraging, which makes us believe that electric acceptance in the country will happen much faster than we anticipated. We are working towards getting higher allocations for India.
The Indian EV market has witnessed steady traction in India and we can confidently say that the EV market will continue to grow in the coming months/years. We will launch the Audi Q8 e-tron in India in quarter three this year.
We also continue to expand our charging network across the country. We will soon make an exciting announcement related to charging for e-tron owners.
