Audi wants to overtake BMW, and is ready to invest 17 Billion USD to do just that

The Volkswagen group wants to become the biggest car maker in the world by 2018 and the group has massive plans for every brand under its umbrella. While Volkswagen’s budget brand Skoda will come up cars like the 2013 Octavia to mop up big volumes, Audi will get a massive cash infusion for new product development and establishment of new factories across the world. The Volkswagen group will invest no less than 17 Billion US dollars to give Audi enough ammo to overtake the world’s leading luxury car maker, competitor and compatriot, BMW.

2012 Audi Q3 Crossover SUV

2012 Audi Q3 Crossover SUV

The German trio of Audi, BMW and Mercedes Benz dominate the luxury car market. While BMW is the world leader in luxury car sales, Audi moved into the second position earlier this year by displacing Mercedes Benz. Audi will use about 13 Billion USD for new product development while the rest of the money will be used to expand production in Hungary, China and  while also establishing new production facilities in Mexico. Volkswagen big investment into Audi is a part of the bigger 50 Billion Euro infusion that the German brand plans to make to develop new cars and build new factories to make them.

For 2013, Audi will be betting on the  A3 hatchback and sedan, cars that it will sell in markets across the world. Both the A3 hatchback and the sedan will be entry level cars in Audi’s luxury car range and will be targeted at younger, first time buyers. Recently, Audi India stated that the A3 sedan will not be launched in India, thus moving away from its original plans of assembling the car in India sometime in 2014. That said, Audi is within breathing distance of overtaking BMW in India. So, Audi is expected to launch a range of cars in India in the coming years.

A big part of Audi India’s expansion program is expected to rest on its crossover range. While Audi does sell the likes of the Q3, Q5 and Q7 luxury crossovers in India, the coming years could see a big expansion of this line up to include more models. Audi is developing no less than four crossovers, the Q2, Q4, Q6 and Q8 for the international car market. Expect a couple of this crossovers to be launched in India as well given the fact that Audi is a market leader when it comes to luxury SUVs in India.

Source Bloomberg

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