German luxury car maker Audi on Thursday said that it will not bring any plug-in hybrid cars even though there are concessions such as zero cost of registration in States like Uttar Pradesh, and will focus only on petrol and electric vehicles (EVs) right now, since the policies keep changing in India.
Also, there should be continued support in terms of lower GST for EVs till the volumes reach an appropriate level, when the industry can sustain on its own, Balbir Singh Dhillon, Head, Audi India, told businessline.
Currently, the total tax incidence on hybrid vehicles is 43 per cent, which is inclusive of GST, while EVs attract a tax of around 5 per cent in India.
“We need support (subsidies) till at least the penetration reaches up to 50 per cent. Our focus is very clear because any new car or any new technology that we introduce, we have to service those cars for at least 10-15 years, and for that we need infrastructure of parts availability, maintain stock, manpower in dealerships who should be fully trained. So everything comes at a cost and we need to maintain it. So, for us the path is clear – petrol and electric (vehicles),” Dhillon said.
Audi portfolio
Currently, Audi’s portfolio contains 97 per cent of petrol cars and the rest from electric cars in its total sales, which it aims to reach up to 40-50 per cent by 20230.
“Probably by mid-term.. .next five-six years from now, at least, we intend to go close to 40-50 per cent by 2030. We are representing very limited segment right now, but once we bring more products...if we are able to bring in the price points after meeting all the pre-conditions. If all those pre-conditions are fulfilled (import or locally assembled)...we should be able to reach because if we have to become a fully electric car company by 2033-34 (Audi global target), we have to cross that barrier,” Dhillon said.
Talking about current market scenario for luxury cars in India, he said that the festive season is expected to drive stronger growth in the second half with overall sales expected to cross the 50,000-mark this year. It would be the highest yearly sales figure so far with the best to date being 48,500 units in 2023, Dhillon added.
Q8 SUV launch
Meanwhile, Audi India launched the refreshed version of Q8 SUV starting at ₹1,17,49,000 (ex-showroom). In addition, it is also marking a milestone of selling one lakh cars in 15 years and celebrate this achievement, the brand is offering a special 100-day celebration benefit for Audi customers that includes loyalty benefits on any purchase, service plans, extended warranty, Audi Genuine Accessories, Audi Genuine Merchandise and Collections and attractive corporate and trade-in benefits.