Audi's India division, owned by Volkswagen, has expressed its interest in the Indian government potentially reducing import taxes on Electric Vehicles (EVs). According to Audi India's head, Balbir Singh Dhillon, such a tax reduction would provide an opportunity for the German automaker to explore various models and pricing strategies in India, the world's third-largest car market. Dhillon made these remarks during the inauguration of a showroom in Bengaluru and emphasized that a three- to five-year window of reduced duties would be particularly beneficial.
This development follows a recent Reuters report that indicated the Indian government is actively working on a new EV policy that could significantly lower import taxes for automakers willing to commit to local manufacturing.
While discussing Audi's future plans in India, Dhillon revealed that the company's Indian arm is currently engaged in discussions with its German parent company about potentially assembling "some" of its electric vehicles locally. However, specific details regarding the timeline and the models involved were not disclosed.
Audi is striving to catch up with its competitors, BMW and Mercedes, as the entire automotive industry undergoes a transition toward electric mobility. At present, Audi India focuses on manufacturing internal combustion engines locally, which are primarily used in its petrol-powered vehicles.
India's Commerce Minister, Piyush Goyal, recently announced that the government intends to collaborate with the automotive industry to develop a new policy that will attract greater investments in EVs.
These efforts align with India's broader goal of promoting greener mobility. The government aims to increase the market share of electric cars to 30 percent by 2030, a significant jump from the current levels, which stand at just 2 percent. Luxury electric vehicles represent a fraction of this market.
As part of its electric vehicle lineup, Audi India introduced four models last month. Out of a total of 16 models offered by Audi India, six are electric cars. These electric vehicles are entirely imported and sold in India, with prices ranging from $136,000 (approximately Rs. 1.12 crore) to $234,000 (approximately Rs. 1.94 crore).
