Program & Batch:

PGDM 2014-16

Term:

IV

Course Name:

Strategic Management

Name of the faculty:

Prof. Rakesh Gupta

Topic/ Title :

Business & Marketing Strategies of Audi in India

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Name
Manish Jain
Anand Kumar Chaturvedi
Abhilasha Shukla
Spriha Agarwal
Tarun Prakash Vyas
Ysabelle Res

Business & Marketing Strategies of Audi in India

SM Project Report

By
Group 8
Section C, PGDM 2014-16
IMT Ghaziabad

Abstract

Audi is a Germany based automobile company operating in India with its subsidiary
Audi India. Audi made entry in India in the year 2004. During this period, Audi sold imported
cars through three dealers. In 2007, Audi India was established as a subsidiary in India with its
headquarters in Mumbai. The company launched several vehicles at different prices and
maintained an aggressive stance. Audi adopted innovative marketing strategies to expand its
business in India. The keenly determined target segment of Audi comprised of executives and
well doing young businessmen forming a niche segment among the broader rich segments. Audi
developed exclusive dealerships to cater to distinctive needs of its customers. In the ten years of
its operation in India, it has surpassed Mercedes and BMW to become the leading luxury car
brand.
In this project we have tried to understand the challenges faced by Audi as a new entrant
in the well established and growing automobile sector in India. We studied the strategies
adopted by Audi for its total market expansion, market shares expansion and how it has
defended its position to reach to the top. We have looked at various external threats that Audi
faced in forms of competitors and changing macroeconomic factors. Finally, we have proposed
growth projection and future prospects of Audi in the changing economy and socio-political
scenario of India.

Contents

1.

Introduction

2.

Literature Survey

3.

Vision, Mission and Corporate Strategy

4.

Organizational Structure

5.

Audis vehicle portfolio

12

6.

Positioning

13

7.

Showrooms

14

8.

Distribution channel

16

9.

Competitor analysis

17

10.

The success story

18

11.

External factors

20

12.

Future ahead

21

References

23

Appendix

25

Introduction
In the auto market in India, the luxury car segment is the fastest growing segment. The segment
has grown at an accelerated pace of 25% in the past few years in India. More and more numbers
of cars and models are making their way in the country making the industry more competitive

yet lucrative. With the fast growing economy and increasingly business friendly policies the
segment presents an encouraging proposition in the future. The HNI community is growing at a
pace of 25% per annum and stands at the highest rate in the world. As such, the luxury car
manufacturers eager to diversify internationally in search of avenues for greater return on
investments are finding developing countries like India more attractive. According to estimates,
the luxury car segment would be growing at a pace of 28% per annum in the coming years.
Presently, nearly 20 global luxury car brands are competing for the market share in India.

Forecasted Volumes (In '000 units)

201320142015201620172018201914
15
16
17
18
19
20
49
58
74
100
141
195
258

Forecasted Volumes (In '000 units)

300
250
200
150
100
50
0

However, volumes sold in the luxury car market are still at low figure of 30,000 units (in 2013)
compared to total sales of cars at around 2.5 Million units, or just at 1.3%. In comparison, China
holds 5-7% share in this segment. India stands as one of the lowest car per person countries
among the emerging markets at only 17 cars per 1000 persons.
Drivers of India luxury market growth
Number of ultra high-net worth households in the country is expected to grow at a compounded
annual growth rate of 27% in the coming years. This would drive the growth of the Indian luxury
car market. The growing per capita income has expanded the luxury car market beyond the
traditionally rich purchasers. The rising demand comes from the upper middle class who are

aspiring to make their way up the consumption ladder. Many customers are first time luxury car
purchasers. This presents an opportunity for top players to leverage first mover advantage and
build a loyal customer base.

Growth of High-net worth households in India

Literature survey

Audi AG is a German luxury car manufacturer headquartered in Bavaria, Germany involved in

designing, manufacturing and sales and distribution of its cars. Audi is a subsidiary of

Volkswagen Group which has a stake of 99.55% in the company. Volkswagen Group made a
gradual purchase of the Audis predecessor Auto Union and launched the brand as Audi in 1965.
Audi is the leading luxury car brand in Europe, China and now in India. China is the biggest
market for Audi followed by Germany. In India, Audi has implemented some of the proven
strategies from its success in China. Audi made its entry in India in the year 2004 and had been
selling its products since then. However, it was in 2007 that Audi India Pvt. Ltd. was established
as a subsidiary of Audi AG and the Volkswagen Group India. The move was motivated by the
long term motive of growth in India to become Indias largest Automobile luxury brand.
Audi has manufacturing plant in India at Aurangabad, Maharashtra apart from two principle
assembly plants in Germany and six other manufacturing units scattered worldwide. The Indian
plant uses Skodas manufacturing facilities for assembling Audi A3, Audi A4, Audi A6, Audi Q5,
and Audi Q7 models locally.
Several international companies are entering in India for manufacturing and distribution of their
goods and services. India provides a large market, lower costs and substantial technological and
human resources. Increasing demand in India justifies the investments rather than just exporting
the product. It also serves the purpose of fending off the competitors. Four basic benefits
achieved through internationalization by such companies are(1)
(2)
(3)
(4)

Increased market size

Greater return on capital expenses and R&D expenses
Economies of scale and scope
Lower manufacturing costs

India provides the necessary factors of production in the form of land, labor and capital. The
clusters of industries in the areas such as automobile components in and around Pune, and Delhi,
and fast emerging areas of auto manufacturing hubs such as Sanand in Gujarat and the
corresponding belt of Hansalpur and Vithalnagar, signify a strong presence of influence of
related industries which makes a crucial factor for success- the factor as delineated in the Porters
Diamond model. At Audi, achieving both global efficiency and catering the local demand in
India is met through the Transnational Strategy. While the R&D and core manufacturing
decisions are centralized, Marketing and distribution decisions encompass more regionalization
to meet the cultural and institutional differences. The network is integrated to allow the firm to
connect the customers, suppliers and other parties.
During the initial years Audi followed the exporting mode of entry. It started its export in 2004
and continued till 2007. It saved on the expenses of establishing operation units in India during
the initial years but allowed for lesser control over the marketing and distribution of its cars.
Before 2004, India was still had a very nascent luxury car market. There was a barrier in the

form of differences in the stages of development from the countries of the luxury car
manufacturers. As such the international trade in this segment was feeble. Mercedes and BMW
were the established brands, latter leading the market. At later stages of development of its
international strategy, in 2007 the subsidiary Audi India was established as a green-field
venture. It provided greater control to the firm over its manufacturing and distribution
operations and capital intensive plants were established at Aurangabad, Maharashtra.
Audi has a low level of diversification and follows the dominant-business diversification
strategy generating more than 70% of its revenues from sales of cars. The A4 line contributed
most to the revenue in 2013-2014 Other sources of revenue include delivery of manufactured
part sets to China. Globally, 80% of revenue comes from sales of cars, A4 being its bestseller
since its debut in 1972 [14]. In addition to its dominant business strategy Audi encompasses
forward vertical integration. It owns and controls its own distribution systems that enable Audi
to reach closer to the customer to communicate its brand propositions. Backward vertical
integration (through forging, machining parts etc.) is neither propitious nor employed presently
at Audi. It would require substantial investment from the firm, reduce its flexibility in the
technologically changeable environment and affect its profitability. De-integration is in-fact the
focus in some of the large auto companies like Ford and General Motors, and they are
increasingly developing independent supplier networks.

Vision and Mission

Vision: To become a leading brand worldwide in the premium car segment.
Mission: We delight customers worldwide.
Mr. August Hoch started an organization named Hoch and Co in 1899 and afterward he built up
his first auto in 1901. As he experienced administration issue, he cleared out his organization in
1909 and made another organization called Audi a while later. The brand of Audi Automobile in
1910 was GmbH and Audi keep on creating autos until the First World War. In 1931, Auto Union
was structured. Before Second World War, this union among producers had immense
achievement. Producers had another begin in Ingolstadt, Germany after the war as a great deal of
military vehicles upkeep and extra parts were required. Since Auto Union not able to produce
gigantic benefit, the organization was shut in 1960 and coincidently allowed the rediscovery of
Audi.
The vision of Audi Company is "Audi- the premium brand". Audi Company stressed its centre
image Audi on the difficulties without bounds when receiving its system 2020. This method got
to be firmer shape since Year 2011 on the grounds that the mission of Audi Company "We charm
clients around the world" was investigated deeper. Audi items are persuading in its image values,

liveliness, and leniency furthermore prevalence. The statement of purpose likewise assumes a
critical part on the way to lead Audi to turn into the main premium brand. Audi characterized its
client take pleasure in four regions of activity which are, we characterize development, we live
obligation, we make experience, and we shape Audi. There are additionally four destinations of
Audi Company which are nonstop development, unrivalled money related development,
worldwide picture pioneer and appealing boss around the world.

Corporate Strategy
For the most part, target business is characterized by sex, age, social-financial gathering,
topography or some other blend of demographics. Audi Company focuses on upper white collar
class purchasers which involve proficient representatives at the upper level of organization
stepping stool, famous people and specialist. Other than that, the vast majority of the Audi items
are intended to be high in speed in this way Audi targets male as opposed to female as indicated
by studies, larger part of the female won't buy a car due to its high speed however they are just
concentrating on the creative plan and solace level that a vehicle can offer though for men, high
speed will be the fundamental criteria. Also, male which have age extending from 30 to 65 years
of age are more favoured in light of the fact that Audi, for the present, are non-prudent item, it is
incomprehensible for youthful men who are still crisp in the general public to bear the cost of an
extravagance auto. The key points of the strategy of Audi are:

We define Innovation- Keeping in mind the end goal to keep conveying their image
quintessence "Vorsprung durch Technik" later on, Audi look to offer their clients lively,
high calibre, inventive vehicles, as well as complete portability arrangements. The
organization creates essential key innovations for option drive frameworks, lightweight
development and integration to generation development. The imaginative character of the
brand with the four rings is likewise highlighted by its present day and unmistakable
configuration colloquialism.

We create experience- The method for pleasing their clients is to make positive client
encounters, for instance by offering creative deals configurations, for example, Audi City.
This digital store rule for real urban communities as of now accessible to clients in
London, Beijing and Berlin gives clients the chance to experience their relentlessly
developing model range essentially, finish with the full exhibit of hues and supplies.
Extraordinary occasions put on by the Audi mark in German urban communities , for
example, the yearly Audi Classic Open Air Festival in Berlin and energizing yacht races
at the Kieler Woche regatta give life-changing encounters and feeling stuffed minutes.
Audi driving knowledge, the project for driving and security instructional classes, is a

method for getting to know the Audi brand's items direct. Another Audi driving
knowledge focus is as of now being built on a 47-hectare site in Neuburg an der Donau.

We Live Responsibility- Audi have deliberately gathered together all exercises

concerned with manageability. "We live obligation" rests on the three mainstays of
maintainability: society, environment and economy. To execute these by and by, we have
concentrated on the five centre subjects "Item," "Environment," "Representatives,"
"Society" and "Operations." For each of these centre topics, the Audi Group has
characterized objectives, tasks and measures that were distributed without precedent for
2013 in the Audi Corporate Responsibility Report. The objectives of the manageability
method are gotten both from inner prerequisites and from the desires of the different
partners. The pertinence of key maintainability points is outlined in what is known as the
materiality grid and routinely overhauled with new discoveries. Case in point, in 2013 an
aggregate of 1,500 representatives in Germany and abroad were solicited to assess the
hugeness from maintainability subjects in the Audi Group. To supplement worker enter,
the Company consistently welcomes delegates of different partners to take part in
examination discussions as a method for particularly advancing the dialog about
obligation and manageability.

Relevance for Audi vs Relevance for Stakeholders

We shape Audi- The difficulties displayed by consistent volume development, a

consistently growing item range, developing internationalization and the advancement of
new advancements and business zones must be handled by drawing on the mastery,
energy and inventiveness of all representatives, and on an association particularly
prepared to handle them. Structures and methodologies are along these lines continually
being refined and balanced. Item and speculation choices are made particularly with an
eye to conveying most extreme client advantage.

Organizational structure
The corporate administration of AUDI AG draws on its aptitude and authority to advance the
investments of more than 70,000 representatives, the Audi shareholders and the Audi clients
around the globe. The chiefs of AUDI AG structure the premise for brilliant corporate
administration.

CEO
Rupert Stadler
VC of Board
Rolf Klotz

Director, Employee
Representative
Sibylle Wankel

CFO
Axel Strotbek

HR Director
Thomas Sigi

Sales and
Marketing
Luca de Meo

Procurement
Bernd Martens

Production
Hubert Walti

Technical
Development
Ulrich Hackenberg

Organizational structure of Audi AG Germany

Audis Vehicle Portfolio

Audi has 40 dealerships in India spread across 11 states and two union territories through which
it sells a wide range of cars in the luxury segment. The Audi model range in India includes the
Audi A3 Sedan, Audi A3 Cabriolet, Audi A4, Audi A6, Audi A7 Sportback, new Audi A8 L, Audi
Q3, Audi Q5, Audi Q7, Audi S4, Audi S6, Audi RS 5 Coup, the most powerful Audi - Audi RS
7 Sportback, Audi TT Coup, the super sports car Audi R8, Audi R8 Spyder, Audi R8 V10 plus
and Audi R8 LMX .
The market concentration is high for star marked models in the figure above, blue highlights
show the next largest selling models. It can be inferred from the table that concentration is high
for the entry level cars because of the steadily increasing number of HNIs who are potential

customers for these cars. Mercedes has a larger market share towards the higher end luxury cars.
The challenge for Audi would be to change its positioning given the evolving segments targeted
by the luxury car makers. The favorable economic conditions would see a shift from micro
segment of entry level luxury towards the higher end cars.

According to online interview from a dealer, Audis Product Portfolio suits the currently fastest
growing Indian Buyers segment that comprises of potential customers for entry level luxury cars.
The segment is stretching its price bracket and is looking for beautiful interiors and big
discounts. Customers in this segment place little value to power offered by BMW or brand
equity offered by Mercedes.

Positioning

In the western market, the luxury car market depends heavily on marketing and brand.
Customers would be loyal to a particular brand and would pay premium for it. In the Indian
context, apart from the brand value, the money worth also matters [5]. Audi has been able to
capture the price-sensitivity of Indian customers in its positioning. In the words of Joe King

Audis Positioning is not as broad to cater to all the micro segments. Audi focus its positioning to
cater to the micro segment of entry level luxury cars which is the highest growth segment
among all luxury micro segments.
During the initial days, Audi faced dilemma in its positioning. Mercedes was already a
established brand among the older generation, while the sportiveness and power of BMW
attracted the younger generation. The company officials worked their way to create a niche for in
the Indian Market. During the initial days, Audi positioned Halo as the ultimate aspirational
brand. Alongside, it provided the entry level luxury cars for the aspirants to purchase and make
their way up the ladder.
The standard products from Audi match its global standards although it is a bit modified to suit
Indian road conditions. For marketing Audi focuses on word of mouth marketing and promotions
in High life style events. For high WOM, Audi puts great emphasis on delivering quality post
sale services. Audi has specialized distribution network for delivery to HNIs and affluent people.
The branding of Audi conveys inspirational and aspirational attributes.
The target customer segment for Audi comprises of wealthy families, corporate executives,
successful entrepreneurs, expatriates and politicians. The most desirable attributes these
customers seek are premium looks, comfort, durability, brand value and performance.
Su
per
lux
ury
Se
gm
ent
(70
Luxury
SegmL+
ent (3070) L)
Premium Segm ent (25 -30
L)
Executive Segment (15-25 L)

Compact Cars (10-15 L)

Target Segments of Audi

Audi offered 3-10 lakh discounts on its cars that were tagged at premium and it was eye-catching
for customers who were keen on negotiating prices. Audi was successful in combining the
attributes of a premium car, elegant looks and cost effectiveness.

Showrooms

Audi has set its showrooms at deliberately essential areas in level II urban communities [8]. This
has empowered Audi to infiltrate deeper in the business sector serving India's interest for
extravagance autos. The workshops at showrooms are prepared to give administrations at
standard worldwide models. The workshops are spread over a zone of around 7500 square feet
and with an ability to serve 6-8 autos every day in a solitary movement working in 3-7 straights.
Workshops are coordinated with body and paint shop meaning to give complete answer for
clients. The professionals at the office are prepared to guarantee world-class administrations to
the clients.
All Audi showrooms have a honeycomb aluminum exterior on the outside with a showcase range
that can suit different Audi autos of diverse portfolios. The format of the showrooms is in light of
novel Audi terminal idea, which separates the brand from its rivals. The showrooms likewise
house the Audi Shop where clients can modify their autos and buy selective Audi stock.
The opening of new showrooms the nation over empower Audi to offer the clients an
extraordinary extravagance experience of class characterizing items and world-class benefits that
reflect center brand estimations of progressiveness, modernity and liveliness. Audi likewise
looks to benefit from the developing interest for extravagance cars in the metro and rural locales
of the nation. This has prompted amazing deals execution YTD coupled with their element
product offering and quick growing merchant system to guarantee that Audi keeps up its position
as the quickest developing extravagance auto mark in India. Audi additionally depended on skill
of neighborhood administrators and set significance on prized genuine domains.

Distribution Channel

Audi accomplished an astounding execution with offer of 10851 units in 2014. Audi India sold
3,003 vehicles in the year 2010 contrasted with 1,650 vehicles in 2009 and enlisted an increment
of 81% in deals development. This has been finished with the assistance of their dispersion divert
in the nation. The organization is connected with numerous nearby players for their profound car
business sector understanding and wide portfolio. Audi's relationship with Kale family in the
Maharashtra has helped them open up and keep up different showrooms crosswise over different
areas. Audi India utilizes koda Auto India Private Limited assembling offices in Aurangabad,
Maharashtra to amass the Audi A3, Audi A4, Audi A6, Audi Q5, and Audi Q7 models
provincially. In this manner it is parcel relied on the neighborhood system for its conveyance
channel. Audi appreciates the Group logistics administrations which helps in making their
merchant system more productive and culminates the whole procedure of administration.
The organization firmly accepts that it has ability in planning and assembling premium
extravagance vehicles and for its promoting and deals, nearby individuals with entrenched
associations and system would be perfect approach to perform the errand as they consistently
take after the top down methodology as opposed to their adversaries.
Audi anticipates dispatching 10 new models in the Indian showcase in 2015. Joe King, the Brand
Director, said, "One year from now we plan to dispatch around ten items in the Indian market. It
will be an energizing and occupied year for us. We are looking to get next round of speculations
into the nation, remembering the huge long haul capability of the Indian market. The dealerships
accessible the nation over: in Ahmedabad, Bengaluru, Bengaluru Central, Bhopal, Bhubaneswar,
Chandigarh, Chennai, Coimbatore, Delhi Central, Delhi South, Delhi West, Goa, Gurgaon,
Hyderabad, Indore, Jaipur, Kanpur, Karnal, Kochi, Kolkata, Kozikhode, Lucknow, Ludhiana,
Mangalore, Mumbai South, Mumbai West, Nagpur, Nashik, Navi Mumbai, Noida, Pune, Raipur,
Ranchi, Surat, Udaipur, Vadodara and Visakhapatnam.

Competitors Analysis

Mercedes is perceived to carry a high premium price owing to high brand values, whereas Audis
low product mix, cheaper entry level luxury cars worked for its favor. Adding luxury SUV in its
portfolio in the form of Q Series drew greater attention of Indian Customers. BMWs product
mix is quite large and it offers a greater differentiation than Audi. Consumers recognize Audi as
the sportiest brand. [6].
Mercedes is recognized as Indias Most Admired Company in a survey conducted by Fortune
magazine in 2014. However, this brand recognition comes with a considerable premium. Since
the Indian luxury car market is still evolving, brand loyalties are still novel concepts in this
sector. Mercedes lost its sales on these grounds, whereas Audi with its aggressive discounts on its
premium tagged cars was able capture the market of Mercedes.
BMW wasnt able to respond quickly to the competition in the luxury car segment and recorded
drop in sales for the two consecutive years in 2013 (-22%) and 2014 (-7%). BMW currently sells
under three brands- BMW, MINI and Rolls-Royce. BMW wasnt able to capture growth in
luxury car segment because of weaker products in its portfolio. Audi, and Mercedes launched
several new cars at more competitive prices and discounts that attracted the wider Indian
audience [9].

Luxury Car Sales in India

Audi
Mercedes Benz
BMW
JLR
Volvo

2010
2011
3003
5511
5819
6548
6246
9371
NA
NA
NA
NA

2012
9003
6840
9375
2383
810

2013
2014
10002
10851
9003
10201
7327
6812
2913 NA
943
1202

%
Chang
e
8.5
13.0
-7.0
NA
27.0

12000
10000

Audi

8000

Mercedes Benz

6000

BMW

4000

JLR

2000

Volvo

0
2010

2011

2012

2013

2014

In 2011, Audi sold about 5511 units in India. In 2012, it sold around 9003 units surpassing
Mercedes Benz to become the largest brand in luxury cars market in India.
The Strategic Focus of Audi projects a broad luxury segment. It has model range from premium
compact to executive segment. Mercedes serves the Ultra segment but is shifting to broad luxury.
BMW focuses on power and performance. It has products customized to Indian road conditions
similar to that of Audi.
Emerging companies like JLR and Volvo pose threat as new entrants, aside from the threat from
existing established brands such as Mercedes and BMW. Further, Indian players like Maruti, are
keen to learn the technologies and acquire managerial capabilities from their foreign counterparts
and with the added advantage of being domestic companies, they may compete more strongly in
the future.

The success story

Indias luxury car market expanded faster than the broader car market last year in 2014. In that
the sales growth of leading luxury car manufacturers such as Audi, BMW, Mercedes and Volvo
stood at 9% compared to 1% growth rate of the auto market as a whole [9].
Audi led the Indian market with the seventh consecutive year of growth while BMW showed
drop in sales for the second consecutive year. In India BMW ranks third, but globally it is still
the leading luxury car brand.
In 2013, Audi became the first luxury car manufacturer to record sales figure of more than
10,000 units both in the calendar year and the financial year and wrested the crown of leading
luxury car brand from BMW. BMW in 2013 had dropped as much as by 22%. In 2014, Audi
India closed the year with record sales. Audi witnessed high surge in demand for its cars, and
sales figures reached 10851 units in 2014. BMW recorded a sales of 6812 units in 2014, a drop
of 7% from 2013.

External Factors
Factors Affecting Luxury Car Market in IndiaTaxes:
High taxes pose the biggest impediment in the growth and development of the luxury car market
in India. Taxes are as high as 100% at present and can go as high as 170% [11]. Basic custom
duty presently is at 100% (it was at 60% in 2011). A survey conducted by the luxury car maker
Lamborghini revealed that a lot of individuals have the willingness to buy luxury cars but they
are backing out due to the excess amount of tax they have to pay. They launched Huracan in
2014 and it was priced at 3.42 crores in India where as in UK and Europe it was priced at Rs
1.26 crore (GBP 130000) and Rs 1.20 crore (EUR 156000) respectively. This shows the tax
burden the customers have to bare and hence the luxury car market is not able to reach its
potential in India. Different tax rates in different states in India make it even more difficult for
the companies to do business [11].

High Net worth Individuals:

Growth of Ultra High Net Worth Individuals

As one can see from the graph, the growth rate of ultra-high net worth individuals in India has
considerably increased in the past 2 years. The total number of high net worth individuals is
expected to triple in the next 4 5 years. This is a great opportunity for the luxury car players. Also
the average age of these high net worth individuals has come down from 42 to 35 in the past 5 6
years, showing a change in mentality of youngsters to buy luxury cars early in their carriers [12].

Future Ahead
When Audi entered in the Indian Market, BMW and Mercedes were already the established
brands. So Analysts were skeptical about the growth propositions of Audi in India. However,
since 2007 Audi has shown continuous growth and today is the leading brand in the luxury car
market in India.
Audi is expected to launch 10 new models in 2015 including the A3 hatchback, R8 LMX and TT
sports car [10] .Mercedes launched its much awaited CLA Sedan on 22 Jan 2015 at 31-35 Lakhs
which is expected to drive volumes. Mercedes has plans to launch 15 new models in 2015 and
expects to regain the crown after a hiatus of six years, closely missing it in 2014.
Future growth strategies of Audi can be analyzed using Ansoffs Matrix-

Existing products

New Products

Existing Markets

Market Penetration

New Markets

Market
Development

Product
Development
Diversification

Given the existing market of luxury cars in India and Audis existing Product lines in this
segment, Audi can aim to increase its market share by growing the existing products in the
currently targeted segment. The market penetration is the least risky strategy since the firm
would be utilizing its existing resources and capabilities. In the fast growing luxury car segment
in India, maintaining the market share will by itself result in growth. The company will have
opportunities to increase its market share if the competitors reach their capacity limits. Once the
market reaches saturation Audi will have to adopt other strategies if it wants to continue the
growth.

REFERENCES
[1]
http://economictimes.indiatimes.com/industry/auto/news/industry/audi-tops-indias-luxury-carmarket-again-but-mercedes-closes-in/articleshow/45809016.cms
[2]

http://forbesindia.com/article/work-in-progress/indian-luxury-cars-jlr-takes-on-thegermans/39371/0
[3]
http://www.irjcjournals.org/ijmssr/jan2013/5.pdf
[4]
http://www.zigwheels.com/news-features/news/audi-to-continue-topdown-strategy-inindia/15003/
[5]
http://www.thehindubusinessline.com/features/brandline/battle-luxurious-bmw-and-mercedesare-trying-to-race-ahead-of-audi/article6704892.ece
[6] http://webcache.googleusercontent.com/search?q=cache%3Awww.audi.in%2Fsea%2Fbrand
%2Fin%2Fcompany%2Fnews
%2Flocal_news.detail.2012~01~audi_india_bags_top.html&oq=cache%3Awww.audi.in%2Fsea
%2Fbrand%2Fin%2Fcompany%2Fnews
%2Flocal_news.detail.2012~01~audi_india_bags_top.html&aqs=chrome..69i57j69i58.1624j0j4
&sourceid=chrome&es_sm=122&ie=UTF-8
[7]
Basics of International Business By James P. Neelankavil, Anoop Rai, pp 187-188
[8]
http://overdrive.in/news/audi-india-opens-its-first-showroom-in-jharkand/
[9]
http://economictimes.indiatimes.com/industry/auto/news/passenger-vehicle/cars/audi-retains-no1-spot-in-luxury-car-pecking-order-mercedes-benz-bmw-follows/articleshow/45904289.cms
[10]
http://economictimes.indiatimes.com/industry/auto/news/industry/audi-tops-indias-luxury-carmarket-again-but-mercedes-closes-in/articleshow/45809016.cms
[11]
http://www.newindianexpress.com/business/news/2014/11/26/High-Taxes-Stall-Growth-ofSuper-Luxury-Car-Sales-in-India/article2540700.ece
[12]
http://profit.ndtv.com/budget/budget-2013-duty-hikes-to-impact-luxury-car-segment-318829

[13]
http://www.forbes.com/sites/greatspeculations/2014/08/25/luxury-automakers-ramp-up-indiainvestments-on-anticipated-future-growth/
[14]
Annual Report of Audi AG 2012, 2013

APPENDIX
1. Models sold in India

Audi
A3

Audi
A4

Audi
A6

Audi
Q5

Audi
Q7

Models assembled locally

Audi
A3

Audi
A8

Audi
Q3

Audi
A5

Imported Models

Audi
TT

Audi
R8