German luxury car maker Audi has started assembling its sports utility vehicle (SUV) Q5 at its Aurangabad (Maharashtra) manufacturing facility.

The Q5 is the company's third model after the A4 and A6 to be manufactured in the Indian market.

Audi has decided to make 1,500 units on a yearly basis.

Frank Dreves, Audi board member for production stated, "The production of the Q5 is part of our long-term growth strategy in India."

"The Indian market for automobiles will grow very rapidly, and the Q5 is the right automobile at the right time," Frank added.

The company has also decided to increase total production to 6,000 units annually by the year 2015 from the existing 2,400 units.

Audi also stated that it had registered its highest half-yearly sales at 1,400 cars with an increase of 71%.

Michael Perschke, Audi India head said, "Our half-yearly sales performance this year is in line with our expectations and has set a new mark for us in India." (With Inputs from Agencies)