Adopting this Strategy could Help Automobile Brands to Expand in Tier 2 and 3 Cities

Shahram Warsi
Shahram Warsi May 15 2019 - 3 min read
Adopting this Strategy could Help Automobile Brands to Expand in Tier 2 and 3 Cities
Enlightening one’s knowledge, the automobile industry in India is one of the largest in the world.

Setting up a business and expanding it successfully to different territories is not everyone’s cup of tea. This is usually a daunting journey which tests every entrepreneur’s and franchisor’s business skills to its maximum level. While some emerge victorious during this phase, others taste failure.

Enlightening one’s knowledge, the automobile industry in India is one of the largest in the world. In fact, according to IBEF, the Indian automobile industry became the fourth largest in the world in terms of sales, increasing by 9.5 percent year-on-year to 4.02 million units in 2017.

With changing time, India has proven to be a beneficial nation for both the national and international automobile brands currently existing in the country. The brands are constantly innovating with their strategies in order to grow their business in different parts of the country.

Audi India Targets Tier 2 and 3 Cities

Recently, the luxury car maker Audi India announced a new strategy for expanding its footprints in different tier 2 and 3 cities of India. Audi India will be growing and extending its market presence by setting up workshops in these cities, followed by showrooms.

The strategy looks promising as Audi has been successful in emerging as a mature brand in India where the ‘Workshop First’ strategy could successfully help Audi to expand its network across the country.

Rahil Ansari, Head, Audi India says, “The idea is always to identify locations, which will be important in the future. Audi will enter these cities with a ‘Workshop First’ strategy. The company has shortlisted many cities with substantial car parking and will make a gradual plan to enter them first with setting up a workshop, followed by establishing a showroom.”

Cashing in on the Positive Trend of Customers

A strategy is only successful when it is implemented carefully along with understanding the modern-day customers. This is where different Indian firms have different strategies that are designed keeping their target customers in mind.

Earlier this year, Audi India rolled out its first workshop in Vijayawada where the brand doesn’t even have a dealership yet. Before this move, Audi customers had to travel all the way to Hyderabad for getting their car’s servicing done.

“We also see a positive trend of customers in these cities who have an appetite for the performance and lifestyle cars. Compared to a few years back, Indian buyers are not hesitant to splurge on themselves. They are young achievers, who like to reward themselves by upgrading their lifestyle,” Ansari added.

Audi India: Contributing to the Increasing Volume

Audi India claimed that it is the first luxury car maker to introduce and launch dealerships in regions like Jammu and Guwahati. The market is proving fruitful to Audi India as the region is witnessing a rise in its aspiration for luxury cars.

"Even if sales in these cities are still limited, the contribution to the volume is increasing. Making the brand available and accessible for these customers is vital for us," he added.

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