"An internal discussion is going on to invest in India for the expansion of our capacities. The detailed announcement will be made in the next three to four months," Audi India Head Joe King told media here.
When asked about the quantum of investment, he refused to divulge, but said that "this is going to be a major investment by the company".
Asked if Audi India will be setting up a new facility or expanding capacities at the existing plant of Volkswagen Group company Skoda in Aurangabad, Maharashtra, King said: "It can be anything."
Audi currently has an installed capacity to produce 14,000 units annually on a single shift basis in India. He said the company is looking for a long-term strategy for the Indian market and hopes to maintain its leadership position in the luxury car segment.
"Conservatively, we should cross 20,000 units sales mark by 2018. It can be done before also. We are confident of retaining the leadership position till then," King said.
Audi had sold 10,851 units in 2014 and remained the largest luxury carmaker for the second consecutive year.

"Currently, 96 percent of our sales are assembled in India. This helps us in offering products at a competitive prices. Because of this, we have been able to capture a market share of 34 percent in the luxury segment and we will maintain this in future," King said.
The market share that the company enjoys in India is the highest for Audi across all its operations in the world, he added.
King said the company is looking to increase its sales by 10-15 percent during 2015. "Last year, the luxury car market grew by 3 percent, but we grew by 9 percent," he added.
King said there has been some positive momentum seen in the market after the new government came to the power at the Centre and the company hopes that this will continue for some time in future.

On Tuesday, the company entered the North Eastern market by opening its first dealership in Guwahati, which is expected to sell 150-200 units in the first year.