Audi AG has officially announced that it will be assembling its cars in India and will set up a national sales company. Audi sold 105 units in 2005 and is on track to sell around 300 imports this year.

However, once local production begins, Audi is confident of selling 1,000 units a year. Audi’s plans to produce cars locally hinge on VW and Skoda’s future operations and an announcement on where Audi cars will be assembled is expected within the next few months.

It is likely that Audi will use Skoda’s existing facility in Aurangabad to begin assembling cars as quickly as possible. Audi officials indicated that it could take up to 12 months to set up the assembly operation.

Ralph Weyler, Audi AG’s board member for sales and marketing confirmed that Audi will begin CKD assembly of the A6 saloon and Q7 SUV models said “These models are the centre of gravity of our Indian portfolio and we expect the A6 and Q7 to form the major part of our offering.”

Audi’s main focus before local production begins is to ramp up the dealer network. Audi also plans to sell its entire range of models in India and this includes a limited number of the fabulous R8 supercar which would cost around Rs. 1.5 crore in India.

“We are willing to support all our products in India even if they sell in few numbers. The idea is to get people to know and feel the Audi brand so that they can act as ambassadors and tell others how good our cars are” said Weyler.

Audi recently launched the Q7 in India, the 4.2 litre petrol V8 will cost Rs 61 lakh (ex-showroom, Delhi) and the 3.0 litre turbo-diesel upwards of Rs. 77.5 lakh. The company has already got confirmed bookings for 50 Audi Q7 vehicles from customers in India.