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Audi To Establish EV Manufacturing Facilities In India - Affordable EVs For All?
Electric cars are heralding a paradigm shift in the world of mobility. With the imperatives of environmental sustainability, advances in technology, and the growing need for energy-efficient transportation, electric vehicles (EVs) have emerged as a compelling solution.
Around 80 per cent of high-end electric cars in India are priced at over Rs 1.00 crore. While this high cost hampers their sales, the German luxury car manufacturer Audi suggests that producing these cars locally could help alleviate this challenge to some extent.
Audi, which manufactures conventional internal combustion engine (ICE) cars in India, is currently collaborating with its parent company to establish a timeline for producing electric vehicle (EV) models locally. This move aims to reduce costs and make these electric cars more accessible to a wider audience.
"About 90 per cent of the cars that we sell in India are produced here. We are working with our headquarters on localisation of electric cars as well. We have not finalised the plan yet, but it is only a matter of time." said Balbir Singh Dhillon, Head, Audi India.
The German carmaker recently introduced the Q8 e-tron in the Indian market, after eight months since its global debut. This model is available in both SUV and Sportback versions, featuring two battery choices. The starting price for the Q8 e-tron is Rs 1.14 crore (ex-showroom).
Cars imported as Completely Built Units (CBUs) face higher taxes in India, whereas vehicles assembled in the country as Completely Knocked Down (CKD) units have a relatively lower import duty.
In October of the preceding year, Mercedes Benz, a prominent leader in the automotive industry, unveiled its first locally assembled electric sedan named EQS 580 in the Indian market.
In the year 2022, Audi India managed to sell a total of 4,187 vehicles, reflecting a substantial year-on-year growth of 27 per cent. Moving into the first half of 2023, the company's retail sales further soared to 3,474 units.
Witnessing an impressive surge of 97 per cent compared to the same period in 2022, during which they had sold 1,765 units from January to June.
At present, the car-manufacturer offers a range of six-electric vehicle models, consisting of the Q8 50 e-tron, Q8 55 e-tron, Q8 Sportback 50 e-tron, Q8 Sportback 55 e-tron, e-tron GT, and the RS e-tron GT. The recent introduction of the Q8 e-tron marks the addition-of-the-seventh-model to their electric vehicle lineup.
Currently, EVs constitute around 3 per cent of Audi's total sales in India. The high-end car manufacturer aims to attain a significant-goal of deriving 50 per cent of its sales from EVs by the year 2030. This objective-aligns with Audi AG's worldwide-plan to transition into a fully-electric vehicle-manufacturer by 2033.
"We are committed to our petrol plus electric strategy. I agree that there are still customers who want diesel and we are losing them, but even the markets like Punjab and the South region where the diesel demand used to be very strong is seeing a decline," Dhillon said.
Back in April 2020, diesel vehicles accounted for approximately 80 per cent of the luxury car market. However, within just three years, this figure has dropped significantly to below 40 per cent.
This transformation occurred when India adopted the Bharat Stage-II emission standards in April 2020. At that time, Audi and a few other automobile manufacturers made a complete shift away from using diesel as a fuel source.
At present, Audi has ample production capability for manufacturing ICE cars at its Group facility in Aurangabad for the next five years. Due to the lower sales figures of the previous-year, Dhillon anticipates that Audi will achieve a growth rate in double digits in India during the calendar year 2023.
Thoughts On Audi Establishing EV Manufacturing Facilities In India
Audi's decision to establish electric vehicle (EV) manufacturing facilities in India is a strategic move that aligns with the global shift towards sustainable mobility. Audi aims to address challenges related to affordability, import duties, and localising production to cater to the specific needs of the Indian market.
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