Gujarat on wheels! Audi may be next to set up shop in state

After Tata, Ford, Peugeot and Maruti, it seems to be the turn of premium car manufacturer, Audi to seriously consider entering Gujarat.

The luxury carmaker, popular for its emblem of four rings, believes that Gujarat is the right investment destination for automobile companies.

"Gujarat has good port connectivity for exports. Secondly, it has got good industrial policy and the state is well connected to the upcoming Delhi Mumbai Industrial Corridor (DMIC). Gujarat, in recent times, has come up as an interesting investment destination," said head, Audi India, Michael Perschke.

Speaking on the sidelines of Audi's A - Drive Experience at Jaipur, Perschke said that the foreign direct investment (FDIs) inflow in Maharashtra has gone down. "And Gujarat is gaining in FDIs. If conditions are favourable and chief minister of Gujarat gives his consent for Audi, then I see no reason why we will not come to Gujarat," he said.

Recently, chairman of Reliance Industries Ltd (RIL), Mukesh Ambani had announced in public that in coming time, Gujarat can become automotive hub of Asia. According to Perschke, Pune and Chennai are the auto industrial pockets.

"But in last one and half years, Gujarat has come into the radar after Pune and southern part of the country. Interestingly, Gujarat has become a promising destination for investment," said Perschke. "Gujarat is attracting investment because of some good work by chief minister of the state," he added.

At present, Audi is assembling the Audi A6 and the Audi A4 for the Indian market in Aurangabad, Maharashtra. But in future, if Audi sets up its plant in Gujarat, it can also export from here. "Gujarat has also got good port connectivity for exports," he said.

Gujarat contributes around 7% to the national sales of Audi. "For us, Ahmedabad is fifth largest selling destination in the country. The top five cities contributing maximum sales to Audi are Delhi NCR, Mumbai, Chennai, Pune and Ahmedabad," said Perschke.

"Most of the Audi buyers belong to either diamond industry or are realtors of Gujarat. With good growth, we are expecting to sell 600 units in Gujarat in 2012," he said. In next two years, Audi plans to open three to four new dealerships in Gujarat. "Vadodara and Rajkot look prospective destinations."

Audi sold around 5,000 units nationally in 2010. "From January 2011 to August 2011, we have grown by 95% in sales in India. Compared to August 2010, sales of Audi cars in India grew by 104% to 510 units in August 2011," said Perschke.

"Company wants to double its dealership network from the present 12 to 23 by end of 2012 in the country," he added. Audi is also planning to unveil A1 hatchback in India. "There are possibilities of us launching A1 hatchback in India in next two years."