With most luxury carmakers concentrating their activity at the top-end of the segment (Rs 1.5 crore and above), the entry-level luxury space in India is somewhat underserved. For instance, having discontinued the A3 sedan in 2020 and Q2 SUV in 2022, Audi’s entry-level portfolio starts with the A4 sedan (Rs 47 lakh-55.84 lakh) and the Q3 SUV (Rs 45 lakh-55.64 lakh) in India. The company, however, is trying to address the entry-level segment with its pre-owned car business.
- Audi Approved Plus recorded 32 percent growth in 2024
- Used retail network expanded from 7 to 22 showrooms in three years
What’s the challenge with entry luxury cars?
There are certain challenges that limit carmakers from serving the entry-level luxury space in India. Speaking to Autocar India, Audi India head Balbir Singh Dhillon, said, “If you go from A4 to A3, it doesn’t mean that car becomes cheaper to make. There is a certain cost that is involved – material cost, manufacturing cost – and we always need a minimum threshold volume to bring these cars to India.”
Moreover, the entry luxury space is more sensitive to ever escalating prices, thanks to inflation and rising raw material and manufacturing costs, than the top-end segment, and that further affects demand.
Expanding used car retail network with increasing sales
Audi India is trying to cater first-time luxury car buyers with its pre-owned car sales via the Audi Approved Plus network. “We’re trying to address the entry-level segment with pre-owned cars where we witnessed a faster growth rate than for new car sales last year. In fact, it’s been doing exceptionally well,” said Dhillon.
The strategy seems to be working for the brand because Audi Approved Plus recorded 32 percent growth in 2024, compared to the previous year. “In terms of overall numbers, pre-owned car sales accounted for almost 75 percent of our new cars sales numbers,” said Dhillon.
Likewise, Audi has also been steadily expanding the footprint of its used car retail network to reach out to a wider audience. “We are trying to create that space for first time luxury car buyers. We have expanded from seven used car showrooms in 2022 to 26 now – that’s almost as much as our new car showrooms,” said Dhillon. And the company plans to keep expanding the network. Dhillon also said the company is offering easy and accessible financing schemes to encourage the uptake at the entry-level segment.
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