Audi India Supports Continued Support for Electric Vehicle Import Duties: Creating a Greener Future for the Auto Industry. The demand for environmentally friendly and sustainable solutions is becoming more and more vocal in the world of Indian automobile aspirations. The CEO of Audi India, Balbir Dhillon, has taken to the public eye to advocate for an important cause: the extension of import duty support for electric vehicles (EVs) by the Indian government. Audi is appealing with politicians to selectively extend import duty rebates in order to promote the wider adoption of zero-emission alternatives, as the country moves toward a greener automotive landscape.
In a significant address at Autocar Professional's India TV Conclave, Balbir Dhillon, the head of Audi India, emphasised the need for a patient and sustained approach to electric mobility, terming it a marathon rather than a sprint. Dhillon stressed the importance of continued government support for at least a decade to achieve substantial penetration of electric vehicles (EVs) in the Indian market.
Key Insights:
Marathon, Not a Sprint
- Dhillon's analogy likens the journey towards electric mobility to a marathon, urging all stakeholders to embrace a patient and enduring mindset.
Government Support for a Decade
- Dhillon calls for a decade-long commitment from the government, vehicle manufacturers, and infrastructure providers to create a sizable and sustainable market for electric vehicles.
Import Duty Reduction for Market Testing
- The head of Audi India urges the government to reduce import duties to facilitate market testing of electric vehicles.
- Given the plethora of options available globally, luxury carmakers like Audi seek to test the Indian market thoroughly before committing to local assembly.
Import Duty Challenges
- India's current import duty structure of 70 percent to 100 percent on completely built units poses challenges for luxury carmakers.
- Dhillon explains that until the market reaches a certain threshold, import duties play a negative role, particularly for cars priced above Rs 1 crore.
Vision for Electric Mobility
- Balbir Dhillon's articulation outlines a vision where electric mobility is not rushed but approached with strategic patience and comprehensive support.
The challenges posed by current import duty structures are acknowledged, highlighting the importance of reaching a market threshold to mitigate negative impacts. The marathon has begun, and with the right support, electric mobility is poised to go the distance in India.
Balbir Dhillon's remarks on the government's review of import duties correspond with a larger context in which India is attempting to draw in foreign electric vehicle (EV) producers, including major players such as Tesla, at an important juncture in policy discussions. The government is considering reducing import tariff rates, maybe to a beneficial 15-20 percent, in an effort to attract global electric vehicle companies to set up shop in the nation. Should this plan come to pass, it might open doors for businesses like as VinFast and Tesla to join India's electric vehicle growth. An important step in supporting the EV ecosystem is being signalled by talks between the Indian government and Tesla, who are getting closer to an agreement for model sales abroad and the potential setting up of a manufacturing unit.
Addressing Audi's EV goals, Dhillon highlights the company's worldwide pledge to switch to all-electric vehicles by 2033. By the end of the decade, Audi wants to see the current EV adoption rate in India, which is around five percent. Audi's electric vehicle (EV) sales trend, especially for the e-tron series, shows signs of growth. Sales of SUVs have increased by 187 percent, while automobiles classified as performance and lifestyle, such as the e-tron series, have had a remarkable 42 percent gain between January and September of 2023. It is noteworthy that 37% of sales during this time were focused in Q3 (July–September 2023), suggesting that the Indian market for Audi's electric vehicles has begun to gain traction. While the government considers measures to catalyze the EV landscape, Audi positions itself to play a pivotal role in the evolving narrative of electric mobility in India.