Mumbai: German luxury maker Audi India has started exploratory work to assemble electric cars, but said high tax rates and policy uncertainty are the biggest hurdles in attracting immediate investment into the country.
Audi said, “We are also bullish on the Indian car market and electric vehicles… but we need stability in policy. If policy is not stable, planning and investment needs should be taken into account when talking to our headquarters in Germany. Impossible to justify.” India head Balbir Singh Dhillon told TOI.
In its new avatar in India after April 2020, Audi has ditched the diesel powertrain and now switched to a cleaner petrol, outlining an aggressive strategy on the electrics front. It has launched a range of green cars in India under etron badging, but these are all imported and cost more than Rs 1 crore.
Dhillon said local gathering is being considered as it can help beat higher import duty, something that has been flagged by the rival mercedes benz and new entrant Tesla. “We are evaluating, although it may take time. The investment can be made as part of a larger VW Group”
The Audi India boss said Indian buyers are already burdened with high taxes, and high sticker prices of electric and other luxury vehicles are making the market vulnerable.
“The luxury segment in India is about 1-1.5% of the broader passenger vehicles market. This is very low and needs to grow. We need some support from policy makers.” He said customers of luxury car buyers are usually in the highest income tax bracket of 30%, but they have to face more taxes while buying a vehicle.
Audi said, “We are also bullish on the Indian car market and electric vehicles… but we need stability in policy. If policy is not stable, planning and investment needs should be taken into account when talking to our headquarters in Germany. Impossible to justify.” India head Balbir Singh Dhillon told TOI.
In its new avatar in India after April 2020, Audi has ditched the diesel powertrain and now switched to a cleaner petrol, outlining an aggressive strategy on the electrics front. It has launched a range of green cars in India under etron badging, but these are all imported and cost more than Rs 1 crore.
Dhillon said local gathering is being considered as it can help beat higher import duty, something that has been flagged by the rival mercedes benz and new entrant Tesla. “We are evaluating, although it may take time. The investment can be made as part of a larger VW Group”
The Audi India boss said Indian buyers are already burdened with high taxes, and high sticker prices of electric and other luxury vehicles are making the market vulnerable.
“The luxury segment in India is about 1-1.5% of the broader passenger vehicles market. This is very low and needs to grow. We need some support from policy makers.” He said customers of luxury car buyers are usually in the highest income tax bracket of 30%, but they have to face more taxes while buying a vehicle.
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