 "Joe King")
Not every model brought into the Indian market will be the next big game-changer. We're here for the long-term, and not just to 'sell more cars this year', Joe King tells Devina Joshi
Audi holds the number one spot in the luxury car segment in India. What is the secret sauce for this success within eight years? Would you pin it on aggressive pricing or the global brand image, perhaps?
I would say it is our four pillars that have worked in tandem, the first of which is customer connect. We continue to engage at a very high level with the customer. We have more than 3.6 million Facebook fans; the second highest in the world for us. We also have drive experience zones, like at BIC, Noida, or the multi-city experiences where we take out our performance cars around the country to different locations, and of course our highly successful Q drives. Last year, we had more than 7,000 participants in those drive interactions. We also launched the Audi Club last year - an owner-based club where members take part in weekend drives.
We have had many firsts. We introduced the Audi A8 L in 2014 with matrix LED headlights - a first in India. We also launched the internationally acclaimed Audi A3 sedan in August 2014. We took a decision not to go with the hatchback, which was available. We listened to the customer and brought in the sedan. We capped last year with the launch of the segment first - the Audi A3 Cabriolet.
If you look at the network footprint, our third pillar of success, we've invested with partners who own their territory. We look for experts in the field who have great connection with the market. So we develop the strategy to not have the biggest network, but to have the best invested network. The fourth pillar is people. We have invested immensely in training our people. Seventy per cent of our customer-facing staff is globally certified by AUDI AG. And we have more than doubled our training last year and we'll do the same again, this year.
The concept of 'affordability of luxury' is one that BMW and Audi are credited with in the Indian market. Your thoughts...
I think we're a brand, which is about young achievers. But luxury is more about choice. And luxury needn't be exclusive. It can be attainable. So when you look at a car like the Audi A3 sedan, it serves a customer who can afford a much larger car but wants a smaller car with luxury. Or maybe it could serve customers who aspire to own a luxury brand like ours and are ready to jump price-bands to reward themselves.
That's something that really struck me when I came to India and one day I'll write a book about all the stories you hear about the 'self-made', how they've come from nothing and are immensely successful. And why should they not experience luxury early on? And that's what we're seeing with people coming into the Audi A3 family.
Audi has used the virtual showroom concept in the UK and other markets. Merc and BMW too have gesture controls at some of their stores. What is the scope for such a trend for inducing trials and purchases in India, where test-drives are way too important?
The test drive is still the most important deciding factor during a buying procedure in India. We have introduced two showrooms on the Bistro concept in India recently - Audi Delhi (central) and Audi Bengaluru, which take customer engagement and experience in the pre-sale phase to a new level, similar to the concept in the UK. Here, while the lounge set-up provides customers with a plush environment, the display and information kiosk helps them choose the most suitable Audi. Our exclusive line allows you to customise the car - you can have your name on the head rest, your company name on the door sills, etc. And to do this customisation, we need to be able to demonstrate to people the opportunities.
With 10 new model launches this year, is Audi India trying to segment/rule?
No, it is about what the customer is looking for. Not every model we bring in is the next big game changer from a volume point of view. We're here for the long-term; we're not here just to try and 'sell more cars this year'. We provide choice to the customer, and product offerings that have got a long-term scope in the market. With the Audi A3, the market was ready for a compact luxury sedan. The A3 Cabriolet is not going to double our volumes on its own. But in that segment it will certainly do very well. As the market grows, those sub-segments will become even more important.
Competitors like Mercedes are stepping on the gas with aggressive pricing, new models and a thrust on dealerships and after-sales. What is Audi's counter-strategy to maintain the status quo?
For us, it is a marathon, not a sprint. We believe that we have the right strategy. If you look at the network, we grow with our investors. And we'll increase our touch points by 15 per cent this year- that's a combination of showrooms and service facilities. So it is not just about putting a showroom to create more sales. You also need to have the right backup and the right service capability to ensure that the customer is serviced for life.
How important is India for Audi as a market, compared to other emerging markets like China?
A lot of people like to create the comparison with China, but the two markets are different. We have always been very committed to India. We invested a lot in the production facilities; 96 per cent of our cars are produced locally. Almost every month in the AUDI AG board meeting, the Indian market is discussed. Obviously we went through some tough times with the devaluation of the rupee and the resulting general economic sentiment in India. But we're absolutely thrilled with the progress we are making in India; in fact, India is the second market in Asia where we are No. 1 (after China). There are a lot of discussions about the future, bearing in mind it is still an emerging market and there will be ups and downs.
IN TOP GEAR
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Joe King was appointed as the head of Audi India in September, 2013. King moved from Audi Australia, where he played an integral role in the management team
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Educated at the University of Melbourne, King has more than 25 years of automotive experience, having begun his career with Toyota in 1990
- He has extensive experience with both mass and premium market brands and has worked in both retail and wholesale roles within the automotive industry
