Audi India weighs local EV manufacturing as it targets 16 per cent market share

MUMBAI: Audi India is looking to put more power behind its growth plans, with local electric vehicle manufacturing, a wider model line-up and deeper dealership reach all in the frame. The German luxury carmaker is evaluating whether to manufacture a battery electric vehicle (BEV) in India as it seeks to raise its share of the luxury car market from around 8 per cent to 15 to 16 per cent over the next three to five years, PTI reported.

Balbir Singh Dhillon, brand director of Audi India, told PTI that the company expects product launches, an improved customer experience and dealership expansion to support its ambitions. A decision on the proposed local BEV manufacturing plan is expected within the next couple of months.

Local production would add another strand to Audi’s strategy for India, where the company is also assessing how trade policy could help it bring more models to market.

Audi is examining the proposed India-European Union free trade agreement (FTA) as a potential route to introduce additional models and test their sales prospects before deciding whether to manufacture them locally.

Dhillon said the agreement could allow the company to bring more vehicles into India to gauge customer demand. Audi plans to retain local production for its core portfolio while using imports to offer buyers a broader selection of models.

The proposed trade pact could also create export opportunities for India’s automotive industry, Dhillon said, potentially benefiting manufacturers on both sides of the agreement. For Audi, the approach would offer a way to assess demand for more models without immediately committing to local manufacturing for each one.

Audi’s expansion plans extend beyond showrooms in major metropolitan markets. The company intends to strengthen its retail presence in tier-II and tier-III cities over the coming year, entering additional towns and converting some existing facilities into new-car showrooms.

Dhillon said much of the planned dealership network development would be concentrated in these markets. The company expects a broader product range, improved customer experience and wider retail access to help it double its current market share over the medium term.

Moving from around 8 per cent to 15 to 16 per cent would mark a substantial increase in Audi’s presence in India’s luxury car segment. The proposed EV manufacturing decision, meanwhile, could help determine how much of its future electric vehicle portfolio is built locally rather than brought in from overseas.

Alongside its longer-term plans, Audi India has begun local assembly of the new-generation Q3 at the Škoda Auto Volkswagen India (SAVWIPL) manufacturing facility in Chhatrapati Sambhajinagar, Maharashtra.

The compact luxury SUV is scheduled to launch in India on 16 October 2026. It will feature a 2.0-litre petrol engine and Audi’s quattro all-wheel-drive system, with the company also promising several segment-first features and technologies.

The Q3’s local assembly adds to Audi’s existing manufacturing footprint as it weighs a further move into domestic EV production. With a launch approaching, a decision on electric vehicle manufacturing expected in the coming months and dealerships set to expand beyond major cities, Audi is preparing several routes to accelerate its Indian growth.