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While you are leading in the luxury car segment, there has been a of controversy over luxury car makers not sharing sales data with SIAM. Would you like to clear air on that?
SIAM has never spoken to us over this. In simple terms, earlier we used to share our data every month, but competition did not and they shared what they wanted. We all want data is good for understanding of the market. Our focus is customers and adopting the right portfolio. We are not bringing in the A3 as hatchback, but sedan because we understood the market. That is why we are the number one. Whether we share the data or not is not important, but understanding customers is. Whether it is a new facility or expansion of the existing will be announced in the coming months.
Last year, the segment did not do that well. What is your estimate for 2015?
Last year was a pretty down year for the luxury car segment in India. The industry grew by only three per cent, we grew by nine per cent. Last year, we sold 10,851, which was ahead of the competitors.
For the segment, it was probably the slowest year, in terms of growth. It is an emerging market and it is volatile market by nature. The entire segment is just 32,000 of an overall car market of 2.2 million. So, this 32 could become 64 well within a year. There is nothing to stop a 100 per cent growth, if few things fall in place. Specifically for 2015 my guess is seven per cent growth for the industry. And for Audi, I think, it will be a double digit growth, especially with the ten new models that will be coming up this year.
Can you share some details about the upcoming models?
There will be ten new models. Some will be replacing existing models like Q3.There would be an announcement on this in the coming months. I can say this much that there will be no hatchback among these ten, though globally we have hatchbacks.
Mercedes too is coming up with 14 models. Will the industry witness a stiff competition in the top segment this year?
They had 15 models last year, we merely had one. Still, we maintained the lead. It is not about the models, it is about the right models. I can bring in 25 new models because there are lot of models available with us overseas, but that does not make sense. Of the 14, models six are CKDs, that is the core volume drivers almost 96 per cent. In the long term we have plans for more localisation.
In your lone production facility at Aurangabad, the production capacity on one-shift operation is 14,000 units per annum and your sales have already crossed 10,000. Is it time for you for a second facility?
First, we will go into double shift. There is scope to expand within that facility. Whether there is going to be another facility or expansion of the current one, I cannot say. But, there will be fresh investment surely this year in line with the "Make in India" call on the part of us and announcement will made in coming months. It will be done keeping next 15 to 20 years in mind.
What will be your investment for this?
We don't normally discuss investment as we are part of bigger Volkswagen group. All options are always open. Currently, we are looking at various scenarios. India is now just outside the top 20 markets purely in terms of volumes for the group. It has been a tough period with exchange rates, the rupee is still not back where it was. Lot of work still to be done. But globally in the board, India is being discussed very frequently.
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Excise duty concessions were taken away for luxury cars towards the end of the last year. What is in your wishlist from the union budget?
The excise duty concessions being taken away was a bit of a problem towards the end of last year. I would like to see some concessions. But I am not going to comment on what the government should do.
But, whatever happens I hope there will be some clarity for the way forward. Keeping everything mind, my view is, there should be long-term clarity on tax structure. What is important is that there should be long term stability in the policy.
