Michael Perschke, who took over Benoit Tiers, as the head of Audi India’s operations in July this year talks exclusively to B&E on how the three pronged strategy has helped them increase Audi’s market share in India
Audi India witnessed a change of hands in July this year as 42-year-old Michael Perschke took over as the head of the luxury car brand in the domestic market. He succeeded Benoit Tiers (promoted to Head of Audi in France) who started India operations for Audi in 2007. Perschke, who hails from Germany, began with Audi AG in 2008 and has worked extensively in Europe and Asia. Interestingly, his earlier stint in India was as General Manager for Audi’s rival Mercedes-Benz between 1997 and 2000 when he was in charge of network development and regional sales. Here, in a candid conversation with B&E, Perschke shares his deep insights about the company’s rapidly growing India operations and how it is gearing up to fight the onslaught of other luxury car makers.
Audi India witnessed a change of hands in July this year as 42-year-old Michael Perschke took over as the head of the luxury car brand in the domestic market. He succeeded Benoit Tiers (promoted to Head of Audi in France) who started India operations for Audi in 2007. Perschke, who hails from Germany, began with Audi AG in 2008 and has worked extensively in Europe and Asia. Interestingly, his earlier stint in India was as General Manager for Audi’s rival Mercedes-Benz between 1997 and 2000 when he was in charge of network development and regional sales. Here, in a candid conversation with B&E, Perschke shares his deep insights about the company’s rapidly growing India operations and how it is gearing up to fight the onslaught of other luxury car makers.
B&E: Considering the huge potential that India offers to luxury car makers, how much does Audi plans to invest in ramping up its production in India?
MP: We are looking forward to invest euro 30 million by 2015. In fact, 65% of it has already been invested by us.
B&E: Of late, competition in the premium car market has taken up a new shape. What strategy will Audi follow to maintain its success rate in India?
MP: A leading premium car manufacturer internationally, Audi is viewed as a progressive brand that offers the discerning car buyer with a truly luxurious experience, reflecting our brand philosophy of “Vorsprung durch Technik”. We believe that the Audi brand value, our highly energetic product line, quality services and customer-centric approach play an important role in the final purchase decision made by our customers. Further, we are focused to strengthen our network to enter into some of the other tier I and tier II cities to ensure that we reach out to our fast growing customer base.
B&E: The luxury car market in India has registered a fair amount of growth in the last few years and is growing at the rate of 25% per annum. How bullish are you on the segments growth in the near future?
MP: According to the World Wealth Report 2009 released by Merrill Lynch and consultancy major Capgemini, India has seen a significant increase in the number of millionaires in 2009. In fact, the list is swelling with rapid economic growth which means that there is no dearth of buyers in the market. Further, the emergence of a more ambitious middle class with increased purchasing power, that understands, values and aspires to own a luxury brand, is significantly contributing to the transformation of the luxury landscape in India. Given this scenario, there is clearly great potential in the luxury segment for growth and expansion in the country. The luxury car industry in India is no different. It’s too witnessing tremendous action with the consumer having a wide array of choice in the segment. In fact, over the last five years, India’s luxury car market has trebled, offering tremendous possibilities for further growth and expansion. Our estimation is that India will be the fifth-largest automobile market in the world by 2015. We believe that this is certainly an exciting time for the luxury car market in India and growth will continue to be fuelled from not just the metros but also the mini metros and rural India.
MP: We are looking forward to invest euro 30 million by 2015. In fact, 65% of it has already been invested by us.
B&E: Of late, competition in the premium car market has taken up a new shape. What strategy will Audi follow to maintain its success rate in India?
MP: A leading premium car manufacturer internationally, Audi is viewed as a progressive brand that offers the discerning car buyer with a truly luxurious experience, reflecting our brand philosophy of “Vorsprung durch Technik”. We believe that the Audi brand value, our highly energetic product line, quality services and customer-centric approach play an important role in the final purchase decision made by our customers. Further, we are focused to strengthen our network to enter into some of the other tier I and tier II cities to ensure that we reach out to our fast growing customer base.
B&E: The luxury car market in India has registered a fair amount of growth in the last few years and is growing at the rate of 25% per annum. How bullish are you on the segments growth in the near future?
MP: According to the World Wealth Report 2009 released by Merrill Lynch and consultancy major Capgemini, India has seen a significant increase in the number of millionaires in 2009. In fact, the list is swelling with rapid economic growth which means that there is no dearth of buyers in the market. Further, the emergence of a more ambitious middle class with increased purchasing power, that understands, values and aspires to own a luxury brand, is significantly contributing to the transformation of the luxury landscape in India. Given this scenario, there is clearly great potential in the luxury segment for growth and expansion in the country. The luxury car industry in India is no different. It’s too witnessing tremendous action with the consumer having a wide array of choice in the segment. In fact, over the last five years, India’s luxury car market has trebled, offering tremendous possibilities for further growth and expansion. Our estimation is that India will be the fifth-largest automobile market in the world by 2015. We believe that this is certainly an exciting time for the luxury car market in India and growth will continue to be fuelled from not just the metros but also the mini metros and rural India.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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