Audi To Examine EV Production Feasibility In India- Seeks Tax Relaxation


After selling out its allotted number of electric vehicles, Audi India is requesting that the parent company distribute 3-4 times more EVs due to significant demand for sustainable vehicles in this marketplace.

Encouraged by the positive consumer reaction, Audi has also launched research to assess the viability of producing EVs in India and is seeking government tax benefits for a limited time to assist to advance electrification in the nation.

“The response for EVs has been unprecedented. Cars however still come with over 60-110% (import duty). We will be requesting the government if they could give us a window of 3-5 years of tax sops, which will allow us to create a decent scale and explore localization,” said Dhillon

Audi India CEO Balbir Singh Dhillon told media on the sidelines of the Q5 facelift unveiling on Tuesday that the reaction to EVs in India has gone far beyond the company’s expectations, prompting it to examine the potential of producing EVs domestically.

Audi has already traded out of its first batch of EVs, and the second batch is likewise sold out until January. It is presently taking reservations for the remainder of 2022.

“We are asking for more allocation in 2022 to satiate this growing demand,” Dhillon said, as Audi presently sells five EVs in India and has sold one EV per day since July, according to sources. These automobiles are valued at above Rs 1 crore.

Any action by the government to boost EVs in India will also assist the Indian operation to persuade the headquarters to invest more in the Indian market, Dhillon said, adding: “If we have to build these goods in India, it will call for investment.”

He goes on saying that, “Going by the traction, we may see volumes of EVs more than tripling or quadrupling — albeit on a low base. But the direction of volumes and growth is very encouraging,” however, he did not provide any particular figures.

Dhillon further added that Audi is aiming for total electrification by 2033 and that the India policy would be in line with the global goal.

The automaker is also looking into versions that can be manufactured in the country after depending on imports for a while, as Dhillon further brings out that Audi India plans to execute on a big portion, at least 80%, of inventory that is ideally localized. 

He further added that the firm is looking towards additional localization, including EVs, but a specific threshold volume is needed to be localized and this is only doable with government assistance.

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