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Audi to begin production of A6 in India from Autumn 2007.

Volkswagen AG's premium unit Audi AG said on Monday it would start production in India of its A6 model from autumn 2007.

Production will be based at a plant in Aurangabad and will involve the assembly of parts manufactured in Germany for Audi A6 cars destined for the Indian market, Audi said in a statement.

"This engagement gives us a better chance to tap the market. Through the delivery of the car parts, our domestic sites will also benefit," Audi board member Jochem Heizmann said.

Audi said it also planned to set up a distribution company based in Mumbai at the start of 2007 and would expand its Indian dealer network to at least eight exclusive Audi dealers in coming years. At present it has three dealers in the country.

Volkswagen has said in the past it sees growing markets such as India and Russia as vital for its long-term future and aims to produce up to 110,000 vehicles a year in India from 2009.

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