Volkswagen-owned Audi’s Indian subsidiary has expressed its anticipation for potential cuts in electric vehicle (EV) import taxes, citing the opportunity to enhance its experimentation with models and pricing strategies in India, the world’s third-largest car market.
Audi India’s head, Balbir Singh Dhillon, revealed in an interview with Reuters during a showroom launch event in Bengaluru that a reduction in import duties over a three to five-year period would offer a valuable window for assessing which vehicle models would be feasible for the Indian market. Additionally, it would contribute to more competitive pricing strategies.
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The Indian government recently signaled its intention to craft a new EV policy that could significantly reduce import taxes for automakers willing to commit to local manufacturing.
Dhillon disclosed that Audi’s Indian division is currently engaged in discussions with its German parent company regarding the potential for local assembly of “some” of their electric vehicles. However, specific details regarding the timeline and the models in question were not provided.
Audi is striving to catch up with its competitors, BMW and Mercedes, as part of its global transition toward electric mobility. Presently, Audi India exclusively manufactures internal combustion engines for its petrol-powered cars.
India’s Commerce Minister, Piyush Goyal, has indicated the government’s intent to collaborate with the industry to formulate a new policy aimed at attracting increased investments in the EV sector.
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These developments align with India’s broader push towards cleaner and greener mobility solutions. The government’s objective is to raise electric car sales to 30% by 2030, a notable increase from the current modest adoption rate of 2%. Luxury electric vehicles constitute a small fraction of this market segment.
Currently, Audi India’s product lineup includes six electric cars out of a total of 16 models. These EVs are entirely imported and are priced between $136,000 and $234,000 in the Indian market.
