MUMBAI: Audi India, after witnessing a roller-coaster growth trajectory in the country, expects a sharp decline in sales for 2024 but remains optimistic about a stronger recovery in 2025.
The German luxury automaker saw its sales volumes plummet by 25-26 per cent in the first nine months of 2024 compared to the same period in 2023. However, Balbir Singh Dhillon, head of Audi India, noted that the decline is likely to be less pronounced in the December quarter due to a significant uptick in festive season sales, with October sales alone surging by 40% year-on-year.
"The domestic luxury car industry is set to close the year with record sales of 50,000 units, growing at 5-6 per cent this year. This low growth follows a compounded annual growth of 33 per cent over the past three years," Dhillon stated.
He admitted that Audi will end 2024 with a decline in sales but refrained from disclosing exact figures, saying, "We are awaiting the December quarter numbers early January."
Challenges and Recovery
Dhillon attributed the decline primarily to supply chain disruptions, exacerbated by geopolitical tensions. “It’s not just about semiconductor availability; various other supply-side issues left us with an insufficient number of models for sale. As a policy, we can source parts only from headquarters, which impacted model availability,” he explained.
Despite these challenges, Dhillon expressed optimism for the coming year, adding, “Having resolved the supply-side issues now, we are hoping for better days. The luxury car market is expected to grow by 8-10 per cent next year, and we are confident of growing in line with or even above the industry level.”
Audi India had an impressive 2023, recording a staggering 89 per cent increase in sales at 7,931 units, following a poor performance in 2022. However, the company struggled to maintain this momentum in 2024 due to supply chain constraints. Sales dropped significantly in the first nine months, with only 1,046 units sold in Q1, 1,431 in Q2, and a weaker performance in Q3.
Competitive Landscape
In stark contrast, Audi’s competitors fared much better. Market leader Mercedes-Benz sold 17,408 units in 2023, a 10 per cent increase over 2022. The momentum continued into 2024, with sales rising by 13 per cent to 14,379 units in the first nine months—marking its best-ever performance in India.
Similarly, BMW India achieved a 19 per cent increase in sales in 2023, delivering 13,303 BMW cars, 869 Minis, and 8,768 motorcycles under the Motorrad brand. This growth extended into 2024, with a 10 per cent rise in sales during the first nine months, totalling 10,556 cars (including 10,056 BMWs and 500 Minis) and 5,638 motorcycles.
The Q7’s Legacy
Dhillon highlighted the enduring popularity of the Audi Q7 in India, which has sold over 10,000 units to date, establishing itself as a leader in the luxury SUV segment.
The recently relaunched Q7 features a single-frame grille with a vertical droplet inlay design and a host of other enhancements. The seven-seater SUV is priced between Rs 88.7 lakh and Rs 97.8 lakh.
“The Q7 remains a key model for us, and with the new version, we aim to reinforce its leadership in the segment,” Dhillon concluded.