We are most likely to grow in double digits as compared to the industry growth, which is single digits. Overall, I think 2016 was a year of consolidation for us
Rahil Ansari took charge as head of Audi India a few months ago, and at 38, he is among the youngest brand directors of the German car maker. After having spent 13 years with Audi globally, including a two-year stint in India earlier, Ansari has been tasked by the group management to take the company back to number one position in the Indian luxury segment market. In an interview with Shahkar Abidi, he spoke about the opportunities and challenges facing the company, the impact of GST, future launches and his plans to regain the market share.
Audi India lost its leadership place to Mercedes Benz. How do you plan to reach there again?
What I can say is that we are most likely to grow in double digits as compared to the industry growth (in luxury segment), which is single digits. Overall, I think 2016 was a year of consolidation for us and time for us to step back and see what needed to be done to come back stronger. We believe in coming back in the strongest manner. Taking a reference from the boxing legend Mohammad Ali's life, in 1974, when no one expected him to come back, he did that and was successful. We believe in a similar comeback for Audi India in the luxury segment once again. In order to reach there, we are working on strategies and product line for future years. Also, we have an advantage of being perceived as a younger brand. We have the youngest age group of people purchasing our products.
But every company says that it is targeting young customers in India...
India is a young country with a large percentage of their population being young and growing financially and in all other walks of like. So being perceived as a young brand helps us. I often smile when I read newspaper articles where competitors claim that they have a young customer base. But to be frank, I do not see a 37-year-old guy sitting in an E-class car with a long wheelbase. I do not believe this.
As a luxury brand, how do you see the alternative segments like electric vehicles (EVs)?
There is still not enough clarity on certain issues. The government wants to have 100% vehicles to be EVs by 2030. Though it seems ambitious, it is a realistic target. We also believe that Audi India in the EV segment also has a future. We will have the product ready to be rolled out in the Indian market in three years, if required. There is potential for alternative technologies like electric vehicles. The target of having all vehicles EV by 2030 is achievable and real, provided all the OEMs (original equipment manufacturers) and government think alike. Creating the infrastructure for it including the charging stations, etc, needs to be done in conjunction with the companies and the government.
So will you be bringing a Tesla-like product in India?
We don't want to be like Tesla or any other car, but an Audi. Without sounding arrogant, I believe that we will be offering a much better EV product.
The luxury car companies are passing the benefits of lower taxes to the customers in the pre-GST days. Does the resultant rise in bookings apply to Audi India also?
It is too early to comment on GST. Let's put it this way. After May 19, for a whole week there was a sense of complete indecisiveness among the people. Slowly things begin to improve and now people are buying it. The transactional price you are getting in June is best as sales and service packages are being offered in and around Audi. Actually, in the past few days, the number of bookings has doubled and I want to see if the trend actually continues after the GST implementation. But I will not like to call the increase in our bookings as the pre-GST fever as we are doing special promotions in June, unlike our rivals who are doing it to clear their old products. We do not have the necessity to do that.
So at what pace do you see the company growing as part of its turn-around plan to regain number 1 position?
I am happy with the results. I can say that we are most likely to grow in double digits although the luxury market here grows in single digits. At present, Audi India has a network of 94 customer touch-points, which includes 42 showrooms, 43 workshops and 9 used-car showrooms. We have plans to take it to 100-plus by the end of the year.
How many launches are you planning this year?
In 2017, we have around 10 launches in the pipeline. A5 is coming up in the second half of the year. It will be a completely new segment, offering a good mixture of a coupe and a sedan. It will be positioned between an A4 and A6.
How is the launch of new Q5 placed at the moment?
I cannot disclose it but what I will say is that it will be coming soon to the market as the dates are being finalised.
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