EA RESEARCH button_bg EXECUTIVE VIEW button_bg JOE KING

The Audi India team is a great mix of experience and those starting their careers. There is a high level of education, intelligence and drive for success, both individually and as a business.

Audi has already edged ahead of its rivals and it’s all about sustaining the position and growing from here. What is your strategy for Audi for the next few years?

We attribute our success in India in such a short span of time to four strong fundamental pillars – Expansion of product portfolio and service offering, expansion of our dealer network in the country, progressive Customer Connect initiatives, and talented pool of human resources. Most importantly this success is also due to the strength of the brand and the equity it enjoys among auto enthusiasts and customers alike.

For the Indian market, the strategy has to be right and ours has been on track. The strategy that we follow is having the right product mix, a good dealership network, a wide area of after sales service & well trained personnel for customer service. We are investing heavily in after sales service and have invested 50% more this year than last year in after sales facility for better customer service.

We are pleased to have consolidated our No. 1 position in the luxury car industry and have been seeing a remarkable sales performance month after month. We are confident that we will be the first luxury car manufacturer in the country to cross sales of 10,000 units in a calendar year.

Undeterred by the current market scenario, we are also on track with our expansion strategy on the product and network front with the introduction of exciting product line and strengthening of our dealer network not only in metros, but also in tier II and tier III cities of India. We will soon expand our network to 34 locations.

One of our key differentiators is our marketing strength and progressive customer engagement initiatives through the creation of unique driving experience programs (Audi QDrive, Audi R-Drive, Audi Women’s Power Drive, Audi Multicity experience, Audi Ice Driving experience, Audi sportscar experience, among others) for our existing customers as well as enthusiasts who want to be a part of the Audi family. We will continue to focus on these initiatives as they contribute immensely towards sustaining brand loyalty. We also need to see that our manpower is adequate to handle our growing customer base in a right manner.

Right now the Indian market is not growing much, and our strategy would be to maintain our market share and grow by bringing in the right products to the market. We are also focusing on having a profitable business model.

What business notes did Mr. Perschke share with you when he handed over the reins of Audi India to you?

It was a comprehensive handover around the current strategy and activities as well as a brief on all employees and key stakeholders. In addition to this, there was a comprehensive handover in Ingolstadt from all departments on the operations in India

How is the luxury auto market doing globally given the current sentiments? Where are the highest growth rates coming from?

Globally the market is going through a cyclic phase but there is still growth in regions like South America and Asia although in western European markets, the market has slowed down However, Audi has posted strong growth in this challenging environment with 2013 YTD:

1,312,700 cars sold worldwide (+7.5%)

With very positive development in the UK, the United States and China, we increased our sales in all regions around the world in October. In doing so, we are continuing our global growth pattern

What has been your key observations regarding Audi in India? Where would you place India in Audi’s overall global scheme of things?

India is a huge market & Audi is present with the right product mix of class defining products, a good dealership network, wide area after sales service network & well trained personnel for customer service.

We followed the top-down strategy for India: A8L, A7, A6, A4 / Q7, Q5, Q3 and have enjoyed great customer response through the years which has taken us to the pole position in India.

We are still growing in the market and at the same time we have ensured that our manpower is adequate to handle our growing customer base in a right manner.

We also have to make sure that we are well prepared in terms of dealer network, right product fit and mix and quality after sales service.

India is a core strategic market and one of the fastest growing markets for Audi worldwide and we are happy that Audi has been the driving force of the luxury car market growth in India.

India is a very complex market to operate in. What are your plans to deal with this complexity? What are your major take-aways from your experience in Australia that you feel will help you in India?

It’s been close to three months that I have been in India and I am trying to understand the Indian market. The first thing that I noticed here was that people are quite optimistic and their aspiration level is very high. I also met my dealers, who are quite passionate about the brand and have invested a lot in it.

In India, we notice that today the trends are followed much faster and there is a latent hunger for luxury. The aspirations and mind-set of a luxury car customer are very different.

We already have the right product mix catering to our customers’ requirements and expectations. We are also focused on maintaining customer loyalty for the brand, which is the most crucial thing in today’s competitive scenario.

Your two major competitors have recently come up with relatively lesser priced products.
Do you think that this is something that luxury brands should focus on? Does Audi plan to come up with cheaper cars as well especially keeping in mind that Audi is priced higher than other luxury cars?

Our understanding is that the Indian customer is a value sensitive customer and not a price sensitive one.

Our growing number of younger customers prove that if an Indian buyer sees value by way of product offering features, performance etc. he /she is willing to pay a higher price for the same. We have several examples of Audi Q3 and Audi A4 customers who have jumped price bands to buy our luxury cars. These customers are looking for better value and not for a lower price.

While some luxury car manufacturers have introduced low-specification products to meet lower price points, the strategy has been largely unsuccessful.

As the Indian buyer is a discerning buyer, we have consciously stayed away from the strategy of introducing “cheaper” products. For e.g. our Audi Q3 was introduced at a higher price than competitors but with more features. The Audi Q3 received an overwhelming customer response and continues to be a favorite among customers.

Customer purchases depend on what suits their needs; it is the overall product package and value proportion that usually comes into play while buying a luxury car. They prefer brands that speak their language. Hence our customers prefer an Audi because they can connect with our brand values of progressiveness, sportiness and sophistication.

For India, we see significant potential especially for the Sedan version of the new A3 We are therefore evaluating earliest possibilities to bring this model to the Indian market.

What are your expansion plans in 2014?

We want to bring our class defining products to all the luxury aspirants, wherever they are.
We at Audi India have worked hard on our expansion strategy for the year 2013 with the launch of class-defining models and strengthening of our dealer network not only in metros, but also in tier II & tier III cities of India and we will continue to do so.

Going ahead, we will continue our focus on having the right product mix, a good dealership network, a wide area after sales service & well trained personnel for customer service.
We are also investing heavily in after sales service: 50% more this year than last year in after sales facility for better customer service.

Right now the Indian market is not growing much, and our strategy would be to maintain our market share and grow by bringing in the right products to the market. We are also focusing on having a profitable business model.

What is your impression of the talent pool available in India? What are the key traits that you look for when you are hiring senior management?

First impressions are that the talent pool is deep. The Audi India team is a great mix of experience and those starting their careers. There is a high level of education, intelligence and drive for success, both individually and as a business. Predominantly I look to understand the personal values of people when I am hiring. I see great potential in training and educating people about the technical aspects of a job, but you can’t train attitude. I look for people who demonstrate a self-motivated drive and who will fit into a culture of empowerment and a challenging environment.

Finally on an informal note, what do you do when you are not working? What are you passionate about?

Outside work my time is predominantly taken up with family. I have two teenage boys and enjoy spending time with them on weekends. I love to travel and immerse myself in new cultures. I also very much enjoy playing golf – a sport where the challenge is only to you and I am intrigued at the power of the mind to enable you to play brilliantly some times, and appallingly at other times. Sadly in my case, appallingly mostly!

Mr. Franck DardenneJoe King has been appointed as the Head of Audi India, and takes over from Michael Perschke who will move as Head of Network Strategy and Business Management, international level, at AUDI AG.

Educated at the University of Melbourne, Joe King brings more than 23 years of automotive experience to the role, having commenced his career with Toyota in 1990. He has extensive experience with both mass and premium market brands including Toyota, BMW and Audi in Australia and has experience in both retail and wholesale roles within the automotive industry.

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