Audi Starts Production in India

New A4 to follow in late 2008

To say that India is a growth market is an understatement, to underline India's importance Audi has today started local production of its A6 midsize sedan for the Indian market. By 2015, Audi hopes to see 2,000 units roll off the production line and will have invested over Euro 30 million by that time. The new Audi A4 will also be built at the Aurangabad site starting late 2008. Audi aims to build 300 A6's in 2008.

�Starting our own production there is the best way to adequately serve such a promising growth market like India,� said Rupert Stadler, Chairman of the Board of Management of AUDI AG. Audi has sectioned off part of the SAIPL group plant at Aurangabad in the state of Maharashtra. The Indian plant is the second production site in Asia for Audi, the first is in Changun, China.

Audi has been in India for three years now, but has only imported vehicles like the Audi A4, Audi A8, Audi Q7 and Audi TT to the country. Audi sees India as vital in its Strategy 2015, which aims to sell 1.5 million cars globally by 2015.

Press Release

Audi production successfully launched in India

• Indian market vital to Audi�s growth strategy
• First locally assembled Audi A6 cars received by Indian customers
• Audi to invest around 30 million euros by 2015
• Assembly of the new Audi A4 to follow starting in late 2008

Audi continues to make its mark in India�s flourishing growth market: the company with the four rings has now successfully started production for the Indian market of the world�s most successful luxury midsize sedan � the Audi A6 � at its Aurangabad site in the state of Maharashtra. By 2015, when more than 2,000 units of the A6 should be rolling off the line, Audi will have invested more than 30 million euros in production alone in India. Starting in late 2008, the new Audi A4 will also be assembled locally.

With this step Audi is continuing the company�s worldwide success story and growth trend, and is making a long-term investment in one of the world�s most promising automotive markets. �Starting our own production there is the best way to adequately serve such a promising growth market like India,� said Rupert Stadler, Chairman of the Board of Management of AUDI AG. �India is one of the components of our Strategy 2015, which aims to achieve sales of 1.5 million automobiles per year worldwide. We want to be the most successful premium brand in India as well.�

The carmaker has set up an exclusive assembly line on the premises of the group production facility in Aurangabad for production of the Audi A6. Here Audi consistently relies on the company�s high worldwide standards.

Cutting-edge technology and highly skilled employees are the key to efficient production: the Indian team has been intensively prepared for their jobs with extensive training at the Audi plant in Neckarsulm.

In selecting the location for Audi in India, the group plant for SAIPL (Skoda Auto India Private Limited) in Aurangabad provided several decisive advantages. �Audi benefits from an outstanding infrastructure, highly developed working processes, a large pool of skilled workers and favorable logistical conditions,� said Frank Dreves, Member of the Board of Management at AUDI AG for Production.

He clearly indicates the standards applied at Audi�s second automotive production plant in Asia (after Changchun in China). �Top quality is a worldwide standard for Audi,� Dreves said. �It�s �Made by Audi,� to put it simply. A highly skilled and motivated team of employees there also helps ensure this quality.�

There are currently 35 employees working in Aurangabad on the Audi production line, in quality assurance and in logistics. In 2008, more than 300 A6 sedans will be assembled in single-shift operation. The Audi A6 is intended exclusively for the Indian market.

As well as exclusive Audi production, consistent development and expansion of the sales and dealership structure are also key factors in the company�s growing presence on the Indian market. Audi has been successfully represented on this market for about three years now. In the spring of this year Audi established a sales subsidiary, headquartered in Mumbai. All market activities in India are managed from here. Audi also imports models such as the Audi A4, Audi A8, Audi Q7 and Audi TT.

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