04 January, 2008 : With an eye on a rapidly expanding Indian Luxury car market, German auto maker Audi has set big plans to increase its production base in the country. With the expansion, Audi hopes to effectively counter its competitors like BMW and Mercedes Benz.

The Audi has started assembly of its A6 model at the Skoda facility in Aurangabad. The luxury car maker is presently importing kits in complete knock-down condition. The company plans to start locally assembling the A4 model in the near future.

The Volkswagen Group that owns both Audi and Skoda is spending $530 million for construction of its new facility near Pune. The facility once ready can produce 110,000 vehicles a year. Till recently the Audi models were sold in India only through the import route. The Volkswagen group which owns the Audi and Skoda has a small market presence in India.

The Audi A6 model assembled in India will be available by February 2008. The model will be available in two petrol and two diesel engine variants with a price tag of Rs 39 Lakh to Rs 45 Lakh. Along with the expansion plans, Global premium Audi models will be also made available in India.