German luxury carmakers are fighting intensely for the No. 1 position in the Indian market. Currently, Mercedes-Benz is the only one among the German outfits, to have the highest amount of localisation for its products.
Audi India, is now contemplating local assembly of their engines; to lower costs of its vehicles. For now, engine production is mainly carried out in Germany and later assembled here.
The German manufacturer plans to invest in India, and dominate the luxury car segment. Their primary goal, will be to expand their existing facility; to increase productivity.
Volkswagen Group is confident that the Indian market will prove to be fruitful. The company plan's to invest in India, through all its major brands (Audi, Bentley, Bugatti, Lamborghini, Porsche, Škoda, and Volkswagen marques; motorcycles under the Ducati brand), and dominate the local market.
Audi India, on the other hand, has a wide range of portfolio, ranging of sedans, SUVs, sports cars, and estate wagons. The company's goal is to sell 50,000 vehicles by 2020, which is possible with local assembly; leading to increase in overall profits.