Audi India is gearing up for a substantial surge in the sales of its used cars during the fiscal year 2024. This optimistic outlook is backed by the stellar performance of its dedicated pre-owned vehicle brand, "Audi Approved :plus," which achieved remarkable success in 2023. The brand recorded sales of 3,449 units, marking an impressive 62 percent growth compared to previous periods.
Bridging the Gap in Luxury Car Prices
The driving force behind this surge is the discernible gap between luxury car prices and those of non-luxury vehicles. The escalating prices of entry-level luxury cars have created a strategic opportunity for Audi India. To capitalize on this, the company plans to substantially expand the number of its Approved :plus showrooms across the country. The ambitious goal is to achieve a growth rate of 35 to 40 percent in the fiscal year 2024.
Audi Approved :plus - Affordable Luxury with Assurance
The cornerstone of Audi India's pre-owned strategy is its Approved :plus program, offering not only a diverse range of pre-owned luxury cars but also providing buyers with the assurance of a warranty lasting up to two years. Balbir Singh Dhillon, the Head of Audi India, emphasized that in response to the significant price increase in cars over the past five years, the focus on the pre-owned car business is not just about sales but about bridging the affordability gap and providing accessible luxury options to a broader consumer base.
Impressive Growth for Audi India in 2023
The success of Audi Approved :plus contributes significantly to Audi India's overall growth trajectory, which stood at an impressive 89 percent in 2023, resulting in the sale of 7,931 units. This growth underscores the increasing popularity of selling pre-owned luxury cars in India. Other prominent luxury brands, such as Mercedes-Benz, Lexus, and Land Rover, have also entered this market, offering pre-owned vehicles that undergo meticulous inspections and come with attractive warranty packages.
Strategic Approach: Attracting Customers for the Long Term
Dhillon underlined that the sale of used luxury cars isn't just about short-term gains. It forms a strategic approach to attract customers to Audi's new car business for the long term. By providing customers with the experience of luxury through a pre-owned Audi, the brand aims to foster loyalty. It becomes a cycle where the initial purchase of a used car serves as a gateway for future acquisitions of new cars from the brand.
Challenges and Focus for the Future
Despite the positive outlook, the pre-owned car business faces challenges, primarily centered around the availability of products. Dhillon noted that despite the growing demand, they could have sold more cars if there were a better supply. The current focus of Audi India's marketing activities is directed towards acquiring more pre-owned cars to meet the increasing customer demand. Despite these challenges, the company remains optimistic about the sustained growth of its used car business in the upcoming fiscal year.