Audi to assemble the Q3 and Q7 crossovers in India; Cut price Q7 likely!

In the high end crossover SUV market, Audi is the king of the hill, with both the Q5 and the Q7 muscling out competition. While Audi began assembling the Q5 Crossover last year through CKD kits, just before BMW began selling the all new X3 SUV in India, the Q7 is still being imported as a completely built unit(CBU). Soon, that could change as Audi India will begin assembling the Q7 through CKD kits at its Aurangabad assembly unit. Once than happens, the Q7′s price could fall by a few lakhs, that is if Audi decides to pass on the benefit to the car buyer, which we expect it would.

2012 Audi Q7 SUV Crossover

Currently, the price of an automobile brought through the CBU route in India increases by almost double due to the hefty 60% import duty and the other assorted taxes that the Indian government levies. In contrast, CKD assembly in India means that the manufacturer has to pay only 30% import duty. This further reduces to 10% if the engine and transmission is assembled in India. So, CKD assembly, which encouraging investment in India through manufacturers setting up assembly units and employing a local labour force, also reduces the price of high end luxury cars by quite a bit, resulting in these cars selling in bigger volumes.

2012 Audi Q3 Crossover

Therefore, CKD assembly is a win-win proposition for the manufacturer, the Indian economy and the Indian car buyer. In the middle of this year, Audi India will also launch the Q3 Crossover, a car with which it plans to take on the hot selling BMW X1. The Q3 will also be assembled from CKD kits at Audi’s Aurangabad production unit, allowing the automaker to price it quite competitively. Yesterday, we carried a big story about Audi India’s launch plans during 2012. You can read the full story right here.

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February 3, 2012 | By Jay Prashanth · Tags: 2012 Audi Q3 Crossover, 2012 Audi Q7 Crossover, Audi India

Comments

2 Responses to “Audi to assemble the Q3 and Q7 crossovers in India; Cut price Q7 likely!”

pradeep bhoir on February 9th, 2012 5:55 pm

i would like to know when ckd kit assembly starts for q7 in india what would be price impact on q7
Jay Prashanth on February 22nd, 2012 1:23 pm

Dear Pradeep,

The Audi Q7 will be assembled in India from the end of 2012!

Cheers,

Jay