With five electric variants on offer, Audi India calls for lower EV import duty

With the launch of the Audi e-tron GT and RS GT electric sports cars in the country last week, the German auto giant has as many as five electric e-tron variants in its line-up for India. However, since the models are being brought via the import roue, the auto company has called for a lower taxation on import of electric vehicles.

Audi has termed the higher import duty on EVs in the country as an impediment for growth of the EV segment whereas some relief in terms of duties could help the company sell more EVs as well as convince its headquarters to locally manufacture the models here.

The auto company has already sold off the first batch of e-trons that it had imported to the country for sale, highlighting that the market is ripe for electric vehicles. "It gives us confidence that people are ready, India is ready for electric mobility. All this is helping us to introduce more and more such cars," Audi India Head Balbir Singh Dhillon told PTI.

He pointed out that the import duties are, however, turning out to be a limiting factor for the sale of the electric models. "If duty is less, probably we can sell more in the country," he said. He further added that even if the government provides a relief for at least three to five years, it will help the carmaker achieve a certain minimum volume. Thus, in turn, explore a possibility of manufacturing EVs locally.

Currently, cars imported as completely built units (CBUs) attract customs duty ranging from 60 per cent to 100 per cent, depending on engine size and cost, insurance and freight (CIF) value.

Audi aims for 15 per cent of its total sales per annum in the country to include electric vehicles by 2025. Globally, the auto company aims to become an electric vehicle manufacturer from 2033 onwards.

(with imports from PTI)