Lower taxes needed to help grow luxury EV segment: Audi India
Audi.
Balbir Singh Dhillon, head, Audi India, said while the company is considering introducing more electric car models in the domestic market, and exploring the possibility of assembling them locally, policy continuity is required to make investments viable.
He emphasised that subsidies are needed to drive growth in the EV segment, «till the time we reach a decent penetration level». «There is no science behind this; it's just a gut feeling that, maybe by the time we reach 50% EV penetration in the luxury space, we need that support (lower GST) and thereafter, it is driven by itself,» he said.
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EVs currently contribute about 3% of sales at Audi India, which the company expects to surge to 40-50% by 2030.
«Probably by midterm...in the next 5-6 years from now, at least, we intend to go close to 40-50%,» said Dhillon. He said Audi would continue its focus on petrol and EVs for growing its sales in the Indian market.
The company has plug-in hybrid vehicles in its global portfolio but has still to decide on launching them in India. «The direction of the government is clear. Hybrids are not part of our strategy (as of now),» he said.
India currently levies 5% goods and services tax (GST), plus cess, on hybrids. The tax incidence on hybrid vehicles in the country totals 43%, while battery electric vehicles (BEVs) attract a tax of about 5%.
Audi India plans to expand its EV portfolio, including by adding more affordable
