Audi India is reported to have launched a study evaluating the feasibility of localizing electric car manufacture for the Indian market. However, the German automaker is planning to lobby the Indian government for temporary tax concessions beforehand.
At the moment, imported cars are hit with a 60–110 percent import duty. By seeking some relief, Audi wishes to further drive and incentivize electrification, which will help better gauge demand for domestic EV production.
Speaking to Economic Times India, Audi’s Indian head, Balbir Singh Dhillon, said, “We will be requesting the government if they could give us a window of 3–5 years of tax sops, which will allow us to create a decent scale and explore localization.”
Related: Will Tesla Convince India To Reduce Duties On Imported Electric Vehicles?
We’ve heard a similar line from Tesla earlier this year. Tesla’s CEO, Elon Musk, said on Twitter that an Indian factory was “quite likely” if the company was successful in its lobbying efforts, and it’s understood that the government was considering such a move. Although India lacks the EV framework that has been pushed and adopted by other countries, the nation is keen to reduce pollution in major cities.
However, any reductions in import tax are likely to be opposed by India’s domestic manufacturers, some of whom continue to sell unsafe vehicles to the Indian public. Many have already called for the proposed deadline of 2022 for stricter emissions and economy regulations to be extended.
Despite shaky footing for electric cars in India, Audi’s launch of their e-tron range appears to have been a success. The first and second batches of the electric vehicles, which includes the e-tron SUV, e-tron Sportback, and the e-tron GT, have already sold out, with the Indian arm only able to accept orders for a February 2022 delivery onward.
