Audi praises India's new EV policy as it aims to start local manufacturing
- Audi currently sells e-tron and Q8 e-tron electric vehicles in India, both of which are imported.
Encouraged by the Centre's invitation to invest in India and manufacture electric vehicles locally, German auto giant Audi plans to take the plunge to grab the opportunity of lower import duties on EVs. Audi, part of the Volkswagen Group, aims to manufacture half of its luxury cars in the country within the next four years. Audi will follow the luxury carmakers like Mercedes Benz to start local production which will help it to keep the cost of the luxury cars down.
Audi India has said that the process to start local manufacturing of its electric vehicles is in the pipeline. Though the carmaker could not give a specific timeline, it admitted that talks with Audi's top management is on to initiate the process. Audi currently assembles ICE vehicles like Q3, Q3 Sportback, Q5, Q7, A4 and A6 at its facility located in Aurangabad, Maharashtra. However, the carmaker imports all the electric vehicles it currently sells in India. These include Q8 50 e-tron, Q8 55 e-tron, Q8 Sportback 50 e-tron, Q8 Sportback 55 e-tron, e-tron GT and RS e-tron GT.
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Audi's top management said that the new EV policy will encourage a lot of carmakers around the world to make in India. Andre Konsbruck, Vice-President of Sales Overseas at Audi, said, “The government seems to be very committed to sustainability and to the electric future. So it might really accelerate the localisation of premium electric cars, which will automatically then also drive the demand. We are currently evaluating different scenarios. I hope that we will be able to make a decision soon."
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As Audi management in India awaits a green signal from the headquarters, Balbir Singh Dhillon, Head of Audi India, thinks the next three years will be crucial as more EVs are expected to be launched in India in the premium and luxury segment. Dhillon was quoted by news agency PTI saying, "Hopefully we should have some solution at some point in time. That is the time when you can reach even more set of customers because then you will get the best advantage in terms of price point."
Audi sees the Indian auto industry as key strategic destination for the German carmaker. Konsbruck expects the luxury segment to see overall sales in India breach one-lakh unit mark in a year within 2030.
(With inputs from agencies)
