Audi starts assembling A6 model in India

MUMBAI (Reuters) -- Volkswagen's premium unit, Audi, has started assembling its A6 model in India to compete more effectively with rivals including Mercedes-Benz and BMW.

The Audi A6 will be assembled from completely knocked down kits imported from Germany in the group factory in Aurangabad in western India, where Volkswagen's Skoda also builds cars.

Audi will initially assemble about 300-400 units and can go up to 1,000 units a year, a spokeswoman said.

The first locally assembled A6 sedans, which will be available in two petrol and two diesel engine variants, will be delivered next month. The reduced prices will range from 3.9 million rupees to 4.5 million rupees ($99,000-$115,000).

Audi, which also imports the A4, A8 and TT models, has said it expects to sell around 3,000 cars by 2010, when passenger vehicle sales in India are forecast to top 2 million units.

It would consider assembling other models such as the A4 if there is sufficient demand, the spokeswoman said.

Volkswagen, which also assembles the Passat sedan in the Aurangabad facility, is spending $530 million on a new plant near the western Pune city to make up to 110,000 vehicles a year from the second half of 2009.