With an aim to double its market share over the medium term and make a strong comeback in India’s highly competitive luxury car market, Audi India is preparing a major product offensive. Three strategically important models will be launched within nine months, Audi India head Balbir Singh Dhillon told Autocar India.
The rollout will begin with the new-generation Q3 in the fourth quarter of 2026, followed by the A5 in the first half of 2027. The third model will be the Q9, a new flagship SUV positioned above the Q7.
“This is a resurgence, if we can use that word. Most of our product portfolio will become new over a period of time,” Dhillon said.
“For sure, we will have three new models, probably in even less time, maybe within the next nine months.”
The launches will begin a wider portfolio renewal aimed at bringing Audi’s Indian line-up closer to its global product cycle. The need for a reset is clear. Audi sold 4,510 cars in 2025, less than half its peak of 11,192 units in 2015, when it briefly led India’s luxury-car market. Its share has since fallen to around 8-9 per cent.
Audi wants to increase this to 18-20 per cent over the next three to five years, with Dhillon indicating that the target could be reached in three to four years. The company is not chasing market leadership immediately, but wants to rebuild scale sustainably with newer products and less dependence on discounting.
Q9 Local Assembly Under Study
The Q9 will be the most important addition to Audi’s range. It will give the company an entrant against the Mercedes-Benz GLS and BMW X7, a segment in which it has not competed so far.
“The Q9 will potentially be our first product in the D segment. We are working to make it in India at some point,” Dhillon said.
Audi is studying local assembly of the Q9 at the Skoda Auto Volkswagen India facility in Chhatrapati Sambhajinagar. It is also evaluating local assembly of the larger engine required for the Q9. Audi currently assembles the 2.0-litre EA888 petrol engine in India.
The Q9 is being developed with greater emphasis on cabin luxury and rear-seat comfort, an important requirement at the top end of the Indian market.
“More than the size, it is also about the luxury inside. Most cars are focused on the driver, but this will focus equally on the people sitting behind,” Dhillon said.
Multiple seating and equipment configurations are planned, allowing Audi to cater to buyers looking for captain seats, a bench or a three-row layout. The Q9 will also provide a natural upgrade for existing Q7 owners.
A5 to Replace A4
The A5 will take over from the A4, though Audi plans to position it a step above the outgoing sedan.
“I would not call the A5 a one-to-one replacement for the A4. It is probably an A4 Plus,” Dhillon said.
The petrol-powered A5 will offer more cabin and boot space, higher comfort and newer technology. The A4 will be phased out as Audi transitions to the new model.
The new Q3 will lead the rollout in late 2026. Audi has not disclosed specifications but says it will be priced broadly in line with competitors rather than using a low starting price to chase volumes.
Audi’s internal data shows that the highest trim accounts for around 55 per cent of its sales, compared with 35 per cent for the middle trim and only 10 per cent for the entry version. This has convinced the company that luxury buyers will pay for technology and equipment.
Local Assembly Remains Central
Audi expects locally assembled models to eventually contribute 90-95 per cent of its India sales. Imports will largely be restricted to performance, niche and other brand-building products.
The India-European Union free trade agreement could make more low-volume imports viable, but Dhillon said the expected limit on vehicles eligible for lower duties means local assembly will remain central.
“Make in India will be 95 per cent of the strategy. The balance could be five, seven or 10 per cent. That is where these models will play as brand shapers,” he said.
The renewal comes amid higher product costs and a stronger euro, which Dhillon described as a “double whammy”. Audi has already taken two price increases and expects further revisions, as manufacturers cannot absorb the entire currency impact.
Audi will continue to focus on petrol and electric vehicles, with no plan to reintroduce diesel. The Q6 e-tron is under evaluation, but a decision has not been taken. Plug-in hybrids will depend partly on their treatment under the India-EU FTA.
Network Overhaul
The product push is being supported by a revamp of Audi’s retail network. Almost all its dealerships are being renovated or have recently completed upgrades, with dealers moving to Audi’s latest global showroom format.
One in every three new Audis is bought by an existing owner, but the company now needs more conquest sales to deliver its market-share target. Its Audi Approved: plus pre-owned network, which has expanded from seven outlets in 2021 to 27, will also be used to bring used-car customers into the new-car fold.
Audi’s earlier rise in India was powered by diesel engines, the Q range and aggressive prices. Its comeback will now rest on fresh products, higher local assembly and a stronger retail experience. The Q3, A5 and Q9 will be the first test of that resurgence.