Porsche exploring assembly of Cayenne SUV in India amid growing domestic demand
Porsche is exploring opportunities to start assembly of its iconic model SUV Cayenne in India amid an “unprecedented surge” in demand, senior industry executives aware of the German luxury carmaker’s plans told ET. Porsche AG board members Detlev von Platen, executive board for sales and marketing, and Matthias Becker, vice president of region overseas and emerging markets, are in Delhi to meet senior government officials, the sources said.
They are scheduled to meet officials at Invest India and Niti Aayog on Tuesday.
“Porsche is examining possibilities to locally assemble the SUV (Cayenne) to avail of tax benefits and expand its footprint in this fast-growing space,” a senior executive in know said on condition of anonymity.
The company’s sales in India grew 64% on year to 779 units in 2022 with Cayenne accounting for almost half of it, the person said.
Porsche did not share any information on the development in response to a query from ET.
India recently surpassed Japan to become the third largest automobile market in the world.
The country imposes 100% import duty on cars with cost, insurance and freight value of more than $40,000 and 70% on cheaper vehicles.
Customs duties on knocked down auto parts, which are then locally assembled in the country, are substantially lower at 15-35%.
Porsche currently manufacturers vehicles in Germany and in Slovakia.
The company’s first assembly facility outside of Europe will open shortly in Malaysia, where Cayenne will be produced for the local market only. India could join the ranks if discussion with the government progress favourably.
Porsche currently sells a range of imported cars like Macan, Cayanne and Panamera priced between Rs 88 lakh and Rs 1.84 crore ex-showroom in
