Ch. 5 - Developing a Global Vision

Audi has become the most popular automobile company in the global market. Once a company started in Germany by a single man and amalgamated into four different companies it has earned it's place in the world of luxury vehicles. It is highly demanded amongst the rich and the wealthy all over the world. The company has a total of seven production plants worldwide. Germany, Hungary, Belgium, Slovakia, Spain, China and India.

India and China are two countries that have the highest population and cover a large regional area. Audi had been supplying India with premium luxury cars since 2004 but in 2007 it finally decided to step in as Audi India. It has it's manufacturing site in Aurangabad and about 28 dealerships in 11 states. India is one of those countries that have only two class differences "The Rich" and "The Poor". The poor qualify for cheap labor and the the rich are the people that enjoy the luxury of these cars. The economy might be good in India but it is only for the upper class.

In China Audi first started off in Changchun. In 1988 agreements were signed for the manufacturing of Audi 100 in China with FAW-Volkswagen which is a joint venture and is one of the biggest automotive manufacturer in China. The primary reasons why Audi established it's grounds in China is obviously because of China's rising economy, cheap labor and cheap resources. And not to forget the same class difference. The consumer demand has relatively increased which begs the requirement for another production plant. The Audi Foshan plant started production in 2013. The statistics below show the increase in annual production in China till 2013.