11 February 2022

EV manufacturing in India will give Audi price advantage

Audi is believed to be revving up to set up a manufacturing plant for electric vehicles (EVs) in India so as to get an advantage over its rival on the pricing front. 

As a result, sales may literally skyrocket and Audi could easily overtake its counterparts — Mercedes Benz, BMW and Jaguar Land Rover (JLR) — to become the country’s top luxury car maker.


EV manufacturing in India will give Audi price advantage
Audi e-Tron 50
Along with Mercedes and BMW, Audi has made its presence felt when it comes to luxury cars in India. Its mini SUVs and sedans have gained prominence in India and it has also caught the fancy of those willing to lap up electric vehicles.  

If it is the first auto firm in the luxury segment to set up such a unit in India, it will gain a big foothold compared to other luxury car makers. This is because it will be in a position to price its cars competitively compared with its peers. 
 
The way most countries — including the US, the UK and India — are looking to transition into the EV space, it seems that most car makers may also be in a hurry to go fully electric. Audi, for instance, has targeted to go fully electric by 2033. So, after 2033, the company will not have any diesel or petrol cars.

Audi India has been making internal combustion engine (ICE) cars at its Aurangabad unit for well over a decade. It rolls out models such as Audi A4, A6, Q5, and Q7 from this plant. 

Audi is also very aggressive in India, with its EV offerings. Currently, it brought in a slew of its e-cars — the e-Tron 50, e-Tron 55, e-Tron Sportback 55, e-Tron GT, and RS e-Tron GT into the country. 

These e-cars have seen a huge response from prospective buyers. More than 3,200 units were sold in 2021 versus over 1,600 cars in the previous year, which is a whopping 100 per cent growth. 

This has probably prompted Audi to opt for a fully e-car manufacturing set up in India. But the prices of these e-cars are somewhat prohibitive right now. 

The e-Tron 50’s price starts at over Rs 1 crore (Rs 10 million) and the top model (e-Tron GT) is priced at Rs 2.05 crore (Rs 20.5 million), ex-showroom. 

However, Audi prices will fall drastically when these cars are made in India. Also, the luxury car maker has planned a litany of models for India. Hence, the urge to go electric is even more. 

Audi India’s head Balbir Singh Dhillon has revealed that the company is doing a constant evaluation to see how acceptable its EVs would be. 

If the prices are set right, it would be a game-changing decision by Audi. This is something the company’s top guns must realise. Also, with Tata Motors going all out with EVs, JLR e-vehicles may soon be produced in India.

Dhillon revealed that by 2033, Audi plans to go fully electric. According to him, it’s a question of when rather than whether Audi would do it.

He also said the carmaker’s EV product range is strong enough to cater to the needs of the Indian customer for a few years.

So, from this statement, it seems that the luxury car giant may not be in a hurry to set up an India EV plant. It may happen, maybe, after five years.

But if the plant is set up earlier than rivals, it will give Audi a head-start in its pricing strategy. 

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