Audi India expects sales to remain flat in 2026, despite a projected 12% growth in the country's luxury car market.

The German carmaker aims to return to double-digit growth in 2027, supported by new model launches. The company is relying on festive demand and the new-generation Q3 to attract customers during October-December. Balbir Singh Dhillon, Brand Director of Audi India, attributed this year's sales performance to limited product availability rather than weak demand.

"As far as we are concerned, we see this year to be a flat year, no growth, no de-growth broadly. We are primarily keeping in mind that some of the products are towards the end of their life cycle," Dhillon said.

Audi's growth target for 2027 is based on an updated product portfolio. The new-generation Q3 will be followed by the A5 in the first half of 2027 and the Q9 in the second half, addressing gaps as existing models reach the end of their production cycles. Dhillon noted that the A4 sedan was available for only the first six to seven months of 2026, with the A5 scheduled to replace it in 2027.

"For me, the limitation is not demand. The limitation is the availability," he said.

Audi typically records a 20-25% increase in showroom enquiries and subsequent conversions during October-December compared with July-September. The new Q3 is expected to contribute to enquiries, although prospective buyers are awaiting its price announcement before booking. Dhillon expects demand to exceed initial supply, as production will take two to three months to ramp up.

The Q3 typically accounts for 25-30% of Audi's annual sales when the full portfolio is available. Since its introduction in India in 2012, around 26,000 units have been sold.

Audi plans to increase its market share from around 7.5% to 15-16% over the next three to five years. Its showroom network is scheduled to expand from 28 outlets currently to 40 by the end of 2027 and 50 by 2030.

Dhillon expects India's luxury car market to reach around 58,000 units in 2026, up from 52,000 in 2025. In comparison, the broader passenger vehicle market is projected to grow by around 17% to exceed five million units.

He attributed the slower projected growth in the luxury segment partly to currency movements. The euro appreciated against the rupee by around 19% in 2025 and a further 5-6% in 2026, offsetting some benefits from reductions in goods and services tax (GST) rates.

According to Dhillon, the tax changes reduced luxury car prices by nearly 6.5-7.5%, but rupee depreciation offset a significant portion of these reductions.