Audi Welcomes India's Electric Vehicle Policy, Aims to Foster Local Manufacturing of Premium EVs
The new electric vehicle policy unveiled by the Indian government would encourage local production of premium electric cars in the country, a senior Audi AG executive said on Tuesday. Audi AG Vice-President, Sales Overseas, Andre Konsbruck said the Indian government is taking the right steps to accelerate the adoption of EVs in the country.
"The government seems to be very committed to sustainability and to the electric future," he said in an interaction here while referring to the new electric policy. Konsbruck said that India is perhaps the first market where a specific regulation is targeted towards premium cars.
"So it might really accelerate the localisation of premium electric cars, which will automatically then also drive the demand," he stated.
Last week, the Indian government approved an EV policy, under which import duty concessions will be given to companies setting up manufacturing units in the country with a minimum investment of USD 500 million, a move aimed at attracting major global players like US-based Tesla.
The companies that would set up manufacturing facilities for EV passenger cars will be allowed to import a limited number of cars at lower customs/import duty of 15 per cent on vehicles costing USD 35,000 and above for five years from the date of issuance of the approval letter by the government.
At present, cars imported as completely built units attract customs duty ranging from 70-100 per cent, depending on the engine size and cost, insurance and freight value less or above USD 40,000.
Terming the Indian market as a very important and strategic for the German luxury carmaker, Konsbruck noted that the premium segment is expected to touch 1 lakh units per annum mark by 2030.
He noted that Audi will maintain a flexible approach by having both internal combustion engine models as well as battery electric vehicles for the Indian market.
"So that means we will have a completely entire new ICE portfolio and we are going to have a completely new and wide range of electric cars..meaning we are completely flexible to react to the market demand," Konsbruck noted.
When asked if the company would consider local manufacturing of battery electric cars in India, he stated: "We are currently evaluating different scenarios. I hope that we will be able to make a decision soon." Audi India currently imports its entire EV range comprising 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, into the country.
The automaker expects 50 per cent of its sales in India to come from electric vehicles by 2030. Globally, Audi has decided to become a fully electric vehicle manufacturer from 2033 onwards
