Lower import tax on electric cars will help test India waters, says Audi

German luxury carmaker Audi wants to experiment with new electric vehicle models in India to chalk out the best options for the local market. But the EV maker, part of the Volkswagen Group, wants the Centre to lower the import tax on foreign electric cars to carry out the experiment. Audi's proposal comes days after Piyush Goyal, Union Commerce Minister, said that India is planning to prepare a comprehensive electric vehicle policy which may also look at reducing EV import tax in India provided the companies offer substantial investments.

Audi India offers electric vehicles in its fleet, with the Q8 e-tron SUV and Sportback editions being its latest additions. The duo has replaced the older e-tron family of electric vehicles. The price of the new Q8 e-tron electric cars start from ₹1.14 crore (ex-showroom, India). The Sportback version of the new e-tron offers range of up to 600 kms on a single charge.

Audi is now planning to locally assemble some of its electric cars in India. The German auto giant is reportedly in talks with Volkswagen Group on this matter. The carmaker did not reveal any more details on it, or the models planned, yet. Currently, Audi only assembles ICE vehicle locally in the country. Balbir Singh Dhillon, Head of Audi India, said, “If we get a window of three to five years where the government is able to reduce the duties, it will let us experiment what models make sense for India and help in terms of pricing points."

Audi offers six electric vehicles among its fleet of 16 models in India. Most of these cars are imported and attract heavy import duties. The carmaker rivals the likes of Mercedes-Benz, Audi and Volvo Cars in the luxury electric vehicle segment in India.

Earlier this week, news agency Reuters reported that India is considering to reduce import duties on foreign electric cars if EV makers commit to investments in the country. This could be part of the Centre's upcoming EV Policy. Piyush Goyal said that the new policy will be formulated after discussion with all stakeholders. India has been firm on levying heavy tax on imported cars. It turned down Tesla's request to reduce import tax on EVs by saying it needs investment and local manufacturing commitments from foreign carmakers before considering such a move.