Audi plans entry-level A4 premium car

Daimler Chrysler is about to face its first serious challenge at the entry level of the premium luxury market in the shape of the A4 from Audi India. The A4, to be launched at January's Auto Expo, will be priced at Rs 20-22 lakh, directly against the C Class Mercedes.

This also opens up a new segment for Audi India, whose earlier launches, A6 and A8, are priced at Rs 42 lakh and A8 is priced at Rs 70 lakh, respectively.

The Audi A4 will be made available in two variants - one each in petrol (1.8 litre, 163 HP) and diesel (2.0 litre, 140 HP)."With the launch of the A4, we will be taking on Merc's C class. We may not match them on the volumes to start with, but we expect to double our volumes in 2006," said Michael Weber, country manager, Audi India.

Audi is targeting a modest 100 units (of A6 and A8) for calendar 2005 and seeks to double this to 200 units (after the A4 launch) in 2006. In the long run, Audi India aims to become a leading premium segment car maker in India, a feat it had achieved in China.

Audi in China sells over 50,000 units per annum and claims to be bigger than all competition put together in the premium luxury segment.

Though the Merc is already a well established brand in India, volumes have remained in the region of 1000-1500 units with its C class selling a little over 1100 units.

The Merc also sells its E and S class in India, though volumes for the C class is dominant in its portfolio. Analysts said despite being a relatively late entrant in India, Audi India's strategy is something to watchout for.