Audi pitches for lower import duties on electric vehicles

PTI, Sep 26, 2021, 11:44 AM IST

Source: unsplash

New Delhi: German luxury carmaker Audi has termed high taxation on imported cars in India an impediment for growth of the electric segment while noting that even some relief in terms of duties could help it sell more vehicles and convince its headquarters to re-invest in the country for local manufacturing of such models.

The company, which now sells five electric cars in the country, noted that lower taxes would help in lowering the price tag of the imported models which would help it in achieving a certain minimum volume in the market.

With a certain scale, the company can then try to convince its global headquarters to re-invest in the country for setting up local manufacturing for models which are currently being imported.

In an interaction with PTI, Audi India Head Balbir Singh Dhillon noted that the company has been able to sell the first set of electric vehicles it imported into the country for sale.

“The first set of e-trons brought into the country are all sold off. 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,” he noted.

The company last week added two new fully electric four-door coupes – the e-Tron GT and the RS e-Tron GT – in India, taking the total number of such cars in its portfolio to five models.

He, however, pointed out that import duties are turning out to be a limiting factor.

“If duty is less, probably we can sell more in the country,” Dhillon said.

“Import duties are high so that is something where our request to the government is if something can be done regarding it. Even if some relief is for a 3-5 years period it will help us achieve a certain minimum volume which would help us convince our headquarters to invest further in the country to start making the cars locally.”

At present, cars imported as completely built units (CBUs) attract customs duty ranging from 60 percent to 100 percent, depending on engine size and cost, insurance and freight (CIF) value less or above USD 40,000.

Counting on the positives, Dhillon noted that a lower GST rate of 5 percent and help is given by some state governments in terms of registration costs were some of the factors which were beneficial for the electric car segment.

“The biggest impediment is import duties which at over 100 percent is a stumbling block,” he added.

Dhillon noted that a constant good performance in terms of sales would help them in convincing the company’s global headquarters to invest in local manufacturing of such cars.

“They (HQ ) need to believe that there is a demand so that they can think about further investments…there is a positive signal with e-Tron range..we have to run for some time before we can go to them to re-invest in India,” he stated.

Dhillon noted that the company is aiming for 15 percent of its total sales per annum in the country to accrue from the electric vehicles portfolio by 2025.

Globally, Audi has decided to become an electric vehicle manufacturer from 2033 onwards.

Dhillon stated that Audi India is taking steps towards the same direction and is already selling only petrol and electric cars in the country.

“We have moved to a petrol plus electric vehicle strategy now. We are not offering diesel cars now and it is only electric and petrol cars in our product range and that’s the future. It is a step-by-step approach and one day will become a complete electric vehicle maker,” he added.

In order to help its electric vehicle customers in the country, Audi India plans to set up over 100 charging stations across its dealerships and that of its group firms, Dhillon noted.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Puri says taxes on petrol, diesel funding vaccines, free meals, other schemes

Probe will check if Amarinder’s Pakistan friend has ISI links: Punjab Deputy CM

New whistleblower accuses Facebook of wrongdoing: Report

Man sentenced to death on 30th day after raping, killing 7-yr-old girl

Top security officials review security situation in J&K ahead of Shah’s visit

Seven trekkers found dead in Uttarakhand; search on for remaining

Kundapur: Man arrested for peddling ganja, brown sugar

Related Articles More

BMW drives in 5 Series M Sport Carbon Edition tagged at Rs 66.3 lakh

Tesla hits record profit despite parts shortage, ship delays

Jeep India recalls 39 Jeep Wrangler units to fix fuel supply part

Toyota Kirloskar drives in Innova Crysta Limited Edition at Rs 17.18 lakh

Audi opens bookings for new Q5 SUV in India


Unlucky auto Driver in Chikkamagaluru

Udayavani News Bulletin 22-10-2021

Manjamma Jogathi On The Discrimination She Faced

POLYHOUSE | Cucumber Cultivation Guide

Monuments lit up in tricolour to mark 100 crore vaccine

Latest Additions

Puri says taxes on petrol, diesel funding vaccines, free meals, other schemes

Probe will check if Amarinder’s Pakistan friend has ISI links: Punjab Deputy CM

Pakistan look to break T20 World Cup jinx against favourites India

Reliance net profit jumps 43% as it fires on all cylinders

New whistleblower accuses Facebook of wrongdoing: Report

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.