Audi optimistic about EV business in India

Audi entered a new phase of its business in India with the launch of three new products in the electric vehicle SUV segment – the Audi e-tron 50, Audi e-tron 55 and Audi e-tron Sportback 55.

This is the beginning of the policy the company has. From 2026, Audi will launch only electric cars, but will continue to sell internal combustion engine cars till 2033.

“By 2025, 15 per cent of the cars we sell we wish them to be electric. We have full confidence and that is why we have launched three cars. We will launch another electric car this year itself,” said Balbir Singh Dhillon, Head of Audi India.

With the entry of its first electric car, asked what sales figures the company had in mind, Dhillon said: “It is very early to speak about numbers because we have not sold any electric cars and we are just starting. We recently opened up the bookings and we have got a very positive response across the country, even from the smaller cities like Jaipur. We need six-eight months before concrete data can be looked at. It is important that we continue to work on this platform of electrification relentlessly and convince the customer because we are not expecting this to be an overnight success."

As with any EV, range anxiety is an existing problem. “At this point, there is definitely range anxiety. If this car is being used in the city, there is absolutely no problem. You have a range of up to 480 Km. Even if your driving conditions are different, it is still good enough for the city. You don’t need to charge the car on a daily basis and you only need to charge once or twice a week. The range anxiety might be there when you have to travel inter-city when you have to go and come back after a couple of days. You can plan your trip with the My Audi app. You can know where chargers are present on the route. Once you own it, it will become a routine part of your life," he explained.

Replying to a question about incentives given for the purchase of electric cars, Dhillon said: “The GST on electric cars is 5 per cent as opposed to 48 to 50 per cent for other ICE cars. If a customer is taking a loan for an electric car, there is also an income tax rebate on it. Still, the import duty on these cars ranges from 60 to 100 per cent. We would request the government if they can consider reducing it for the first three to five years when we are establishing electrification in the country. At this point, with limited volumes, these cars will be imported.

"The registration, GST and import duty are large amounts. If these things are taken care of, I think we are sorted. I think the central and local governments should also help in creating infrastructure. That is important to be successful in electric mobility,” he added.