The company said that Q3 is the fifth car model after A4, A6, Q5 and Q7 to be produced in India by the Ingolstadt carmaker, Audi said.
"Local production of the Audi Q3 is part of our long-term growth strategy in India, one of the most promising auto markets in the world," Audi Board Member for Production Frank Dreves said.
Various factors like infrastructure in the plant, efficient working processes, qualified workforce along with the growth potential of the Indian market, were the factors that motivated the company to expand the product portfolio at the Aurangabad plant, he added.
"Local production of the Audi Q3 means that Audi India is now building all our Q range models locally. This will reduce waiting times for our customers and will enable us to offer a wider range of versions in the market," Audi India Head Joe King said.
The annual capacity at the company's Aurangabad plant for all Audi models is more than 13,000 units in a one-shift operation, Audi said.