Audi to Build Q5 in India

Audi AG said Thursday it will start assembling the Q5 luxury sport-utility vehicle in India from March to save on steep import taxes and compete with BMW AG, Daimler AG and Porsche AG in the world's second-fastest growing major economy.

"India is the second country after Germany where the Q5 will be assembled," Benoit Tiers, Audi India's managing director, told reporters while announcing the introduction of the new version of the Q7 SUV.

Mr. Tiers also said Audi will introduce its financial services and insurance business in India by December. The company currently offers insurance for its vehicles via Bajaj Allianz General Insurance Co. Ltd.

Fully built cars and SUVs in India attract an import tax of 116%, Mr. Tiers said, adding that the tax drops to 60% if the vehicle is assembled from completely knocked down parts.

Audi, the premium brand of Germany's Volkswagen AG, assembles the A4 and A6 luxury sedans at the factory of Skoda Auto AS at Aurangabad in the western state of Maharashtra.

Czech carmaker Skoda, another unit of Volkswagen, makes cars such as the Laura and Superb at the same factory, which can produce up to 3,000 vehicles per year.

Tiers said Audi India has already spent two-thirds of a €30 million investment planned until 2015.

Audi India sells the Q5 with 2.0-liter gasoline and a 3.0-liter diesel engine options. Thursday, the company began selling the new Q7 SUV with 3.0-liter diesel, a 3.6-liter gasoline and a 4.2-liter gasoline engine options.

Audi also imports and markets the A8 luxury sedan, as well as the TT coupe and the R8 sports car in India.

It sold 1,128 vehicles in India during January-August 2009, a 62% rise from the year earlier. Tiers said the company aims to sell more than 1,500 cars in 2009, compared with 1,050 cars last year.

The automaker currently has dealers in 12 cities, which it aims to expand to 18 by 2011, he said.

Audi Q5 Tested

Well, the Audi Q5 is no Q7. And that’s a good thing, even if it isn’t a true sportwagon replacement.

The Audi Q5 really did impress us once we got our hands on it, even among those of us who tend to find German luxury vehicles a bit too complex and overdone. It was the baby bear of the luxury, small SUV class in most areas – everything was just right. The ride and handling were impressive (unlike the BMW X3), the interior was roomy for the class (unlike the Infiniti EX), mileage wasn’t terrible (looking at you, Volvo XC60), and its low-speed ride is composed (that’s a demerit for the Mercedes-Benz GLK).

Add in its weight and Price. Well, there’s a bit of a negative. The Q5 definitely is porky at 4,320 pounds (but when has a recent Audi been praised for its light weight?), and its $42,800 as-tested price puts it on the podium for pricey compact sporty sport-utility vehicles, just behind the BMW X3.

And, like the comparison made in the Mercedes-Benz GLK blog, the Subaru Forester 2.5XT Limited does pretty much everything the Q5 does, while carrying about 900 fewer pounds and at a nearly $14,000 savings. While it lacks the cachet of a German brand, for some people that cash savings certainly softens the impact felt among peers at the tennis club.

While I do like the Q5—and my wife likes it even more—I wish there was a better business case for Audi to sell manual transmission-equipped, all-wheel-drive sportwagons (with diesel, please) rather than SUVs. With both the A4 and A6 Avants stuck with automatics, and the new S4 available only as a sedan, I guess there is always the pre-owned market.
All new 2009 Audi Q5 SUV

Audi Q5

Audi joined the SUV/crossover party very late when it launched the Q7 a few years back, so the company was not able to fully reap the rewards of the boom period that other manufacturers enjoyed. However, when you enter a segment late you are able to benefit from the hits and minimize the misses that were suffered by those who went before you.

This is not to say that the new Q5 crossover is a copycat or clone vehicle, quite the contrary. I tested Audi’s small crossover and discovered that a lot of the Q7’s charms have been shared with the smaller, nimble Q5.

The Q5 is a crossover based on the A4 car platform. It shares a production line with the A4 and A4 Avant, but the Q5 is taller, longer and wider than its sedan cousins.

The size/dimensions really come into play if you park a Q5 next to a Q7. The Q7 has a shape akin to a short loaf of bread while the Q5 looks like a slightly enlarged kaiser roll. The dimensions alone indicate that the Q5 is an all-new proposition.

Measuring 15.19 feet long and 6.17 feet wide, with a height of just 5.4 feet, casual observers may view the Q5 as a pumped up wagon, but the Q5 is more. Audi wants you to think of it as an SUV/crossover with “sporty elegance” that is able to do some off-roading when required.

The Q5’s drivetrain is a one-choice-fitsall combination with a 3.2-liter FSI directinjection six-cylinder engine and a smoothshifting six-speed Tiptronic automatic and quattro permanent all-wheel drive. The Q5’s six-cylinder produces 270 horsepower and 243 pounds-feet of torque. Audi lists city/highway/combined fuel economy at 18/23/20 respectively. I managed about 19 mpg combined, but I had on my heavy shoes the week of the test drive.

The Q5’s front end is dominated by the familiar Audi headlights and the signature Audi single-frame grille. My test vehicle came with optional bi-xenon lamps and LED daytime running lights. Viewed from the side, the large wheels and creased edges are especially prominent features. Crowned by a railing, the elegant slope of the roof underscores the slim, coupelike styling. The rear features a wraparound aluminum tailgate – same as the hood. Overall, I liked the styling – it looks contemporary, crisp and upscale – especially with the handsome 18-inch wheels and fatty tires.

Audi has a well-deserved reputation for designing premium interiors with a high level of fit and finish. The Q5’s plush cabin includes a driver-oriented cockpit that has an upright sitting position for a command view. The seats were a tad on the firm side, but not uncomfortable. I like how Audi accented the fine leather seating surfaces with real trim pieces, including aluminum, exclusive woods, chrome and Alcantara.

The Audi Q5 comes standard with an electromechanical parking brake, an intelligent chip key, three-zone climate control system and a display screen in the instrument cluster with a nanny function that indicates the recommended gear for efficient driving in any given situation – thanks Audi.

Audi Q5 Review

Audi Q5 Review

The day that Audi celebrated its 100th birthday was also the day that the Audi Q5 arrived. It is the latest SUV from the German manufacturer and younger sibling to the mighty Audi Q7.

Thankfully, the Audi Q5 bears all of the hallmarks of its big brother but isn't quite as brutish but still bullishly distinctive, nonetheless. It must be a matter of scale because the smaller Audi Q5 appears to be almost exactly the same as the Audi Q7, perhaps a little more car-like and, unless they stood side by side, the only noticeable difference is in the large front air intakes that flank the imposing trapezoidal grille, which have more rounded edges.

Smaller than the Audi Q7 it may be, but size is relative and at just over 4.6 metres in length, almost 1.9 metres wide and standing some 1.6 metres tall, the Audi Q5 is by no means small. What is more, the 2.1 metre wheelbase is said to be the longest in its class. This has been made possible by moving the differential forward of the clutch, which in real terms, means more cabin space.

The Audi Q5 also has class-leading aerodynamics and boasts a drag coefficient of just 0.33, which is surprising given the somewhat squared-off front end. However, the bonnet and body contours and design lines, along with the rake of the windscreen, allows the air to flow over and around the car and even strong side-winds don't pose too much of a problem.

Compared to the hefty Audi Q7, the Audi Q5 offers a choice of smaller engines: 2.0TDI and 3.0TDI V6 are the diesels and the petrol options are the acclaimed 3.2FSI and the 2.0TFSI.

The Audi Q5 test car housed the smaller petrol unit, which, with the help of TFSI technology, produces 211PS between 4,300- and 6,000rpm and 350Nm from as low down as 1,500 rpm and doesn't start to tail off until 4,200rpm is reached. These are diesel-like figures and as such, an advantage when towing or off-roading.

FSI stands for Fuel Stratified Ignition, which is a way of making the engine do more for less fuel; it was first developed for the Le Mans 24-hour race and now we all have the benefit of the technology. TFSI adds an exhaust turbocharger, allowing a 0-62mph time of just 7.2 seconds and a top speed of 137mph.