Audi joins Tesla, says cut duty on EVs – EQ Mag Pro
says cut duty on EVsEchoing the demand raised by American auto giant Tesla, German luxury maker Audi has sought a relaxation of 3-5 years on import of electric luxury cars to India. It emphasised that “moderate taxation and stable policy” can see the Indian luxury market grow nearly three times from the current levels.
Audi has said that import duty for environmentally clean electrics should be fixed at 5%, in line with what is reserved for those making locally, instead of the over 200% cumulative taxes reserved for the general gamut of imported cars, including sports and petrol/diesel vehicles.
Audi, which saw sales grow by 100% last year (around 3,300 cars but on a Covid-hit low base) and 49% in the first half of this year (at 1,765 units), says that it is ready to drive in new models — both electrics and petrol — if regulatory environment becomes easier.
“If we get a window of 3-5 years of lower import duty on electrics, it will help us test mo- re global models in India and present a stronger business case to our headquarters to seek more investments. It can help us begin local assembly of electrics faster,” Audi India head Balbir Singh Dhillon said.
Tesla had made a similar relaxation demand on greens, but later decided to go slow on its India plans after the government refused to play ball.
Audi’s Singh said that the company respects the Indian government’s attempt to promote localisation. “We are not seeking a permanent relaxation. We just want a temporary handholding for making a viable business case here to get more models and possibly early assembly. ”
Luxury is just about 1% of the total passenger vehicles sales in India while it is much higher in other locations such as around 13% in China, and as much as 50% in many European countries. In numbers, the Indian luxury car market was at just around 25,000 units in 2021, despite an industry-wide surge after the Covid waves. This was a far cry from the over 40,000 units sold in 2018.
Source: PTI
