Audi India wants low Goods and Services Tax (GST) on electric vehicles to continue in India to improve penetration and help in EV transition in a speedy manner. According to the German luxury auto giant, subsidies are crucial for the growth of electric vehicle segment in the country. Electric vehicle attract GST of just five per cent, the lowest among vehicles sold in India. However, with penetration level of passenger vehicles much lower than other countries, EV penetration in India is still at its nascent stage.

Carmakers like Mercedes-Benz and BMW, two of Audi's German rivals, are the leading manufacturers in the luxury electric vehicle segment in India. Audi, part of the Volkswagen Group, currently has two electric vehicles in its India lineup. They contribute only three per cent of its overall sales in the country. Audi aims to increase its EV sales volume to at least 40 per cent of its overall sales in the next six years.

Speaking on the importance of subsidies to boost EV penetration and sales in India, Balbir Singh Dhillon, Head of Audi India, said lower GST remains a key factor for continued support for electric vehicles.During an interaction on the sideline of the new Q8 SUV launch on Thursday, Dhillon told PTI, “There is no science behind this, it's just a gut feeling that maybe by the time we reach 50 per cent penetration in the luxury (electric) space, we need that support (lower GST) and thereafter it is driven by itself."

The Centre offers various sops for electric vehicle manufacturers as well as buyers through several schemes. For those who have opted for localisation of their EVs, the manufacturers are eligible to apply for the FAME scheme which offers incentives in return. For buyers, low GST is one of the benefits as it is much lower than any other vehicles in India. In contrast, hybrid vehicles attract 43 per cent GST despite being eco-friendly.

Dhillon also said that Audi plans to expand its EV lineup in India soon. While he did not reveal the names of the models the carmaker plans to introduce in coming days, he ruled out any chance of Audi introducing any hybrid or plug-in hybrid models in India. Currently, the German auto giant sells the Q8 e-tron and its Sportback versions along with the e-tron GT as the only electric vehicles. With newer models planned for future, Audi aims to increase the EV sales volume significantly. Dhillon said, “Probably by midterm..next 5-6 years from now, at least, we intend to go close to 40-50 per cent by 2030."

Audi hits one lakh sales milestone in India

Audi India on Thursday announced it has sold over one lakh cars in the country since making its official debut here back in 2007. Audi India first entered India in 2007 with models like A4, Q7 and Q5. Currently, it sells around 15 different models in India, eight of them being SUVs. On Thursday, the carmaker launched the new Q8 SUV at a price of ₹1.17 crore (ex-showroom).

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