Updated February 2nd, 2024 at 11:59 IST
Audi India forecasts 35% to 40% growth for its used car brand in FY24
Audi Approved:Plus recorded a 62 percent growth in volumes last year, with 3,449 units sold.
Audi India: Aiming to strengthen its pre-owned car business, Audi India is looking to capitalise on the widening gap between luxury and non-luxury cars, as the prices of entry-level luxury vehicles has of late seen an increase, as per an Auto Car India report.
The German automaker aims to boost the number of its ‘Audi Approved:Plus’ showrooms for pre-owned Audis across the country which presently stand at 25. The auto major's business will grow around 35 to 40 percent annually in FY2024, it said.
Balbir Singh Dhillon, Head of Audi India, was quoted as saying, "Vehicle prices have risen quite a bit in the past five years, as has the gap between luxury and non-luxury prices.
Due to this, we’re vacating some space at the bottom end of the pyramid. The only way we could address this is through the pre-owned cars business."
Audi Approved:Plus recorded a 62 percent growth in volumes last year, with 3,449 units sold. On the whole Audi India registered an 89 percent growth, with sales of 7,931 units in the same period.
The sale of pre-owned luxury cars has become an increasingly lucrative business in India, with organised players entering the market and offering better product service packages as well as warranties.
Pre-owned Audi showrooms
The vehicle's sold via Audi India’s Approved:plus showrooms undergo several rounds of inspection and come with a warranty of up to two years.
Moreover, several automakers have recognised the favourable post-pandemic shift in the Indian consumer mindset towards spending and higher features.
They also perceive the used car business as a bridge to lure more customers towards their new car business.
Besides Audi, luxury manufacturers such as Mercedes-Benz, Lexus and Jaguar Land Rover, have launched their pre-owned car businesses in India and have witnessed robust growth in the field.
“This will eventually help us sell new cars because after two to four years of using a pre-owned luxury car, a customer has experienced luxury that then holds onto them," Dhillon said.
"It’s a cycle: once you buy a used car, you eventually buy a new car," he added.
Noting that the availability of products is a significant challenge in the pre-owned car business, Dhillon said they could have sold more cars if there was better supply.
"Right now, our challenge is to get more cars. So all our marketing activities are addressed towards acquiring more pre-owned cars and then selling them. Whatever is available is getting sold," he mentioned.
Published February 2nd, 2024 at 11:59 IST