Audi India expects sales to remain flat in 2026, even as the country’s luxury car market is projected to grow around 12 per cent.
However, the German carmaker would be betting on new models it plans to bring into the country to return to double-digit growth next year.
The company is banking on festival demand and the launch of the new-generation Q3 to generate customer interest during October–December.
Balbir Singh Dhillon, brand director, said limited product availability, rather than weak demand, was constraining the company's sales this year.
“As far as we are concerned, we see this year to be a flat year, no growth, no de-growth broadly. We are primarily keeping in mind that some of the products are towards the end of their life cycle,” Dhillon said.
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Audi’s double-digit growth target from 2027 would be supported by a refreshed portfolio.
The new-generation Q3 will be followed by the A5 in the first half of next year and the Q9 in the second half.
The company has faced gaps in its portfolio as existing models reach the end of their production cycles.
Dhillon cited the A4 sedan, which was available for only the first six-seven months in 2026. And, its replacement, the A5, is scheduled to arrive next year.
“For me, the limitation is not demand. The limitation is the availability,” he said.
On festival demand, Dhillon said Audi typically witnesses a 20–25 per cent increase in showroom enquiries and subsequent conversions during October–December compared with July–September.
The new Q3 is expected to generate additional interest during this period.
Initial response to the SUV has been encouraging, although prospective buyers are awaiting the price announcement prior to bookings.
Dhillon expects demand for the Q3 to exceed initial supply, as production takes two to three months to ramp up.
The Q3 is an important volume driver for Audi, typically accounting for 25–30 per cent of its sales in a normal year when the full portfolio is available.
The company has sold around 26,000 Q3s in India since the model's introduction in 2012.
Audi is also pursuing a longer-term strategy to double its market share from around 7.5 per cent to 15–16 per cent over the next three-five years.
Its new car showroom network is set to expand from 28 currently to 40 by the end of 2027 and 50 by 2030.
Meanwhile, Dhillon expects India's luxury car market to grow to around 58,000 units in 2026 from 52,000 last year, slower than the broader passenger vehicle market. This segment is projected to grow around 17 per cent to exceed 5 million units.
He attributed the slower growth in luxury vehicles partly to currency pressures.
The euro appreciated against the rupee by around 19 per cent last year and another 5–6 per cent this year, eroding some benefits from goods and services tax (GST) rate reductions.
According to Dhillon, the tax changes had reduced luxury car prices by nearly 6.5–7.5 per cent. However, currency depreciation has offset a significant portion of those gains.