Audi Looking to Become More of a Service Provider Over Automaker

In a recent interview, one of Audi’s top officials said that the company will soon become a service provider as well as a luxury car maker. The plan is still in the early works, with initial projections of this new support structure not being in place for another five years.

By Jeffrey Bausch - February 24, 2020
Who said what?!?
Why are they going down this road?
What sort of services will Audi provide?
All of this naturally leads to co-branding opportunities
It’s certainly a long road ahead for Dhillon and Audi

Who said it?

In an interview with the Press Trust of India, Audi India Head Balbir Singh Dhillon said that his company, under its 2025 strategy, is working to develop further on the concierge services that it offers to its car buyers. This would be in addition to focusing on specific customer wants as well as enhancing product portfolio, sales, and service network throughout the Indian market.  

Why are they going down this road?

To put succinctly, there’s an opportunity here to capitalize on a fairly affluent market. At present, there are approximately 75,000 Audi owners in India who’ve purchased their car for a price above Rs 30-40 lakh. Audi believes that further research into this group of customers will lead to the discovery of new ways to further interact with them and offer what they want. 

>>Join the conversation about Audi transforming for Indian customers right here in Audiworld.com.

What sort of services will Audi provide?

While research is still in the early stages, Dhillon already has some ideas. One of the easiest to implement would be a concierge app, which could be used for things like booking a restaurant, ordering a bouquet, or planning to watch sporting events or the like.

"It is an extension of the services that we are offering slowly,” he told PTI. “Basically from car to personal lifestyle that you need. For instance, let's say you need to buy very exclusive clothing, we may suggest you where do you stitch your clothing. These are all services which are offered as of now as a gesture of goodwill but this could become a profit center for the time to come."   

>>Join the conversation about Audi transforming for Indian customers right here in Audiworld.com.

All of this naturally leads to co-branding opportunities

This would be a whole new territory for the carmaker to explore, beyond companies it partners with to build the actual vehicles. But in the future, third-party brands that would otherwise never be associated with the Germany-based luxury car maker could be seen as valued partners for the services they provide to Audi drivers. 

>>Join the conversation about Audi transforming for Indian customers right here in Audiworld.com.

It’s certainly a long road ahead for Dhillon and Audi

The enormity of this experiment is not lost on Dhillon, nor Audi for that matter. Everyone recognizes that today’s ideas may not be realized for another three to five years. But there could be a tremendous reward at the end of this road.

"We will have to work with a lot of partners, who potentially may not be car companies, but anything and everything which is in and around the car,” Dhillon told PTI. “There are discussions with a couple of partners," he said, adding "…customer clinic to also understand, as we don't want to do things that customers don't like, where we will not only ask about the car but also about their needs, habits, their lifestyle and how do we reach them more, what else do they expect from us, as manufacturers in the next three to five years’ time. You need to engage with them to find the answers.”  

 

>>Join the conversation about Audi transforming for Indian customers right here in Audiworld.com.

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