The company reported retail sales of 1,431 units during the April-June 2024 period, marking a significant 37% increase compared to the first quarter of 2024. However, this figure represents a 6% decline when compared to the same period in 2023
01 Jul 2024 | 2007 Views | By Autocar Professional Bureau
Audi, the renowned German luxury car manufacturer, has released its sales figures for the second quarter of 2024, revealing a complex picture of growth and challenges in the Indian market. The company reported retail sales of 1,431 units during the April-June 2024 period, marking a significant 37% increase compared to ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Audi, the renowned German luxury car manufacturer, has released its sales figures for the second quarter of 2024, revealing a complex picture of growth and challenges in the Indian market. The company reported retail sales of 1,431 units during the April-June 2024 period, marking a significant 37% increase compared to the first quarter of 2024. However, this figure represents a 6% decline when compared to the same period in 2023, highlighting the ongoing impact of global supply chain disruptions on the automotive industry.
The luxury car segment in India has been facing headwinds due to various factors, including semiconductor shortages, logistics issues, and geopolitical tensions affecting global trade. These challenges have led to production delays and inventory constraints for many automakers, including premium brands like Audi.
Despite the obstacles, Audi India maintains an optimistic outlook on the long-term potential of the Indian market. The company sees growing demand for premium mobility solutions among Indian consumers, driven by rising disposable incomes, changing lifestyle preferences, and an increasing appetite for luxury goods in the country's urban centers.
Balbir Singh Dhillon, Head of Audi India, commented on the results, stating, "While the supply situation in Q2 2024 has improved compared to Q1 2024, it still played a limiting factor on our sales performance. We are confident that our supplies will normalise during the second half of this year, and we will be able to better serve customer demand."
Dhillon noted the strong underlying demand across Audi's product portfolio, which includes popular models such as the A4 sedan, Q5 SUV, and the all-electric e-tron range. He added, "It is important to emphasise that demand remains strong across our vast product portfolio, and we are optimistic about long-term growth of luxury mobility in India, including this year."
In a bright spot for the company, Audi's pre-owned car business, operating under the "Audi Approved: plus" banner, showed robust growth. The division reported a 33% year-on-year increase in sales for the April-June 2024 period, along with an 11% growth compared to the first quarter of 2024. This performance underscores the increasing popularity of certified pre-owned luxury vehicles in India, as consumers seek value and quality in the premium segment.
Audi currently operates 27 Audi Approved: plus facilities across major cities in India. Recognising the potential in this market, the company has announced plans to expand its pre-owned car network, with three additional facilities slated to open within the year. This expansion strategy aims to capitalise on the growing demand for luxury cars in tier-2 and tier-3 cities, where the pre-owned market often serves as an entry point for aspiring luxury car owners.
Looking ahead, Audi India faces both opportunities and challenges. The company is banking on the normalisation of its supply chain in the latter half of 2024 to boost sales and recapture lost ground. Additionally, Audi's focus on electrification, with plans to introduce more e-tron models in the Indian market, aligns with the country's push towards sustainable mobility solutions.
As the Indian economy continues to recover from the impacts of the global pandemic and navigates inflationary pressures, the luxury car market remains a key indicator of consumer confidence and spending power. Audi's performance in the coming quarters will be closely watched by industry observers as a barometer for the overall health of the premium automotive sector in India.