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Will the shift from BS-IV to VI cost Audi in India?





New Delhi: India is trying hard to move towards being a greener country and has been bringing in a slew of measures to curb the menace of pollution. In one such step towards a better India, the Government of India decided to move from BS-IV standards to BS-VI norms. Audi India head Joe King welcomed this, however,  apprehensively.

Joe feels that the move from BS-IV norms to BS-VI norms directly is a good move and it would be beneficial for manufacturers as it reduces complexities and therefore, the cost substantially. But he is scared that the adequate fuel quality to implement this may be hard to achieve.

This shift from BS-IV – VI has a target of 2020. This has most car makers in a fix as a slew of regulations are about to hit them. On top of that, new vehicles with a diesel engine capacity of above 2000 cc are not allowed to be registered in Delhi.

According to Joe, these rules have confused car makers in terms of the diesel issue. “We feel that short-term decisions lead to increased uncertainty and ambiguity for the future not just for manufacturers but also for dealers and customers. As manufacturers, we need clarity on policy directions so that we can amend our strategy in line with the customer demand,” said Joe.

“We welcome the move towards BS-VI. In fact, it would be beneficial for us as it reduces complexity and therefore, the cost substantially. However, we require the adequate fuel quality to implement this,” he added.

Despite this, he continues to see India as a market where the luxury segment will grow. “India is still very young in comparison to the other markets. Currently, it is a little over one per cent of the total market. In established markets, it is in the range of 10-15 per cent, so there is undoubtedly a huge potential,” said Joe.

Considering the fact that India is an important market for Audi, more than 95 per cent of the cars which are being sold in India are built locally. “India is a strategic focus market for Audi AG, and one amongst six Technical Reference Markets globally (the other five being Germany, USA, China, Japan, Russia),” added Joe.

In 2016, Audi has plans to launch at least 10 new cars. The new Audi R8 V10 plus and the new Audi A8 L Security-class VR9 ballistic security standard were launched at the Auto Expo 2016. However, Joe refused to comment on which model Audi is about to bring to India next.
Despite selling more than 11,000 units in 2015 they lost out to Mercedes, who sold more units. To get back into the game, Audi plans to get back in 2016 with a good product mix. Audi refused to mention any names which we could expect in 2016 but made it clear that Audi is looking at the right product mix. What will that be is still not known but Audi in the past decade has managed to figure out the pulse of the Indian crowd and its Q series SUV's selling well in India is a proof of the fact.
Probably, the secrecy Joe wants to maintain is for giving us a sudden shock with a car of a standard that India has never seen before. Till then all fingers crossed!

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