The economy of the State has been in the doldrums for a while; however the luxury segment has not been affected. Homes over a crore are still being purchased and expensive cars are being purchased by those who have a yen for such cars. Audi, the German car maker has a good presence on the roads in Goa. AJIT JOHN spoke to Venkat Rao, MD, Audi Goa, about the performance of Audi in Goa.
HERALD: Since the brand is in the luxury segment that generally defies a downturn how has business been this year?
VENKAT RAO: We have seen a decrease in sales due to a hike in sales tax. Earlier we had parties coming from Karwar, Belgaum and the nearby areas bordering the State to pick up cars from us but now they go to Mumbai or Bengaluru. Earlier the tax was 12.5% but now it is 15%. At the prices that these automobiles are available, that could be a difference of up to a lakh which is substantial. We have made a representation to the government to help us. This is a small market in a small State and we cannot compete with dealers in other states who have a bigger stock and are capable of giving larger discounts. The govt has assured us it is being considered.
HERALD: Which model in the stable drives your sales in the State?
VR: All our products enjoy good demand though the Q3 is our top seller.
HERALD: Do you intend to launch any new models this year in Goa?
VR: The new A4 will be launched soon in Goa.
HERALD: What are the numbers being generated by Audi in the State?
VR: We average around 100 cars a year; this is a number achieved by the three carmakers in this category in Goa. Over the past five years, this has been the average. Yes of course, when mining was on it was a different market but now it is more even.
HERALD: What are the demands of an average interested customer in Goa?
VR: The customer in Goa knows what he or she wants and they know all about the car and the features in it so it is easy. One does not have to sell the car to them.
HERALD: What is your prediction for the market in the next five years?
VR: Stable with nil growth is our current forecast. The same has been true for previous five years.
