Car makers are praising India’s new electric vehicle (EV) policy, which would encourage local production of premium electric cars in the country, and a senior Audi AG executive is already betting big on the country’s market.
Audi AG vice-president (overseas sales) Andre Konsbruck has praised the central government for “taking the right steps to rev up the adoption of EVs in the country.”
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| Audi feels the India EV policy is sustainable and will lead to a surge in sales from this year itself. |
“The government is highly committed to the sustainability of the EV ecosystem in the country,” he said, while giving his views about the new electric vehicle policy of the Centre.
Premium EV demand to rise
Konsbruck said that India is probably the first market globally to facilitate a regulation targeted towards premium cars.
“This move by the government may actually accelerate the localisation of premium electric cars, which will lead to a demand surge,” he added.
Sops to big EV players like Tesla
Last week, the central government in India gave the go-ahead to an EV policy, under which import duty sops will be offered to companies setting up manufacturing bases in India.
The rider is that the minimum investment has to be $500 million and this step will facilitate the entry of major global players like US-based Tesla.
About the new EV policy
The companies that would open manufacturing bases for passenger electric vehicles can import a limited number of cars at lower customs or import duty of 15 per cent
It would be on vehicles with a price tag of $35,000 or above and the time duration would be five years from the date of issuance of the approval letter by the Centre.
Currently, cars imported as completely built units or CBUs pay customs duty ranging from 70 per cent to 100 per cent, based on the engine size and cost, among others.
Audi’s flexible approach
Konsbruck called the Indian electric car market “a very important and strategic for Audi”, and said that premium EV sales could touch around 1 lakh (100,000) units by 2030.
For the Indian market, Audi will adopt a flexible approach — having both internal combustion engine (ICE) models as well as battery electric vehicles (BEVs).
He added, “We are going to have a completely new ICE portfolio as well as a completely new and wide range of electric cars. This implies that we will be flexible while responding to the market.”
Audi weighing options of unit in India
The company said it is evaluating options when asked if it plans to manufacture electric vehicles in India.
He stated: "We are evaluating different scenarios and plan to arrive at a decision soon."
As of now, Audi India imports its EV range — 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 India.
According to the auto giant, by 2030, 50 per cent of its sales in India will come from electric vehicles.
Globally, Audi plans to transform into a fully electric vehicle manufacturer from 2033 onwards.
E-Vroooom’s views
With India’s new EV policy being considered good by premium electric car makers, Audi may soon set up a unit in India but it also must consider getting into the “affordable” car category to play the volume game in the country.
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