Audi India is pushing for continued lower GST rates on electric vehicles (EVs) to foster growth in the sector until it becomes self-sustaining. According to Balbir Singh Dhillon, Head of Audi India, the current support is essential for achieving significant market penetration and encouraging faster adoption of EVs.

Dhillon emphasized that the current tax structure, where battery electric vehicles face a 5% GST compared to the 43% tax on hybrid vehicles, plays a critical role in making EVs more accessible. "We need lower GST support until we achieve a reasonable level of market penetration. This is a gut feeling, but perhaps once we reach 50% market share in the luxury EV segment, the sector can drive itself," Dhillon stated.

At present, EVs constitute only 3% of Audi's sales in India, but the company has set ambitious goals to increase this share significantly. Dhillon projects that by 2030, electric vehicles could account for 40-50% of Audi’s sales in the country.

Audi plans to expand its EV lineup and introduce more affordable models to meet this target, though specific future models have not yet been confirmed. The automaker has decided against introducing hybrid vehicles in India, focusing instead on petrol and electric models.

Globally, Audi has committed to selling only battery-electric vehicles beyond 2033. Dhillon highlighted the company's commitment to sustainable growth, which involves investing in new technologies and enhancing customer services.

The luxury car market in India has grown by approximately 8% in the first half of the year. With the festive season approaching, Audi expects overall sales to surpass 50,000 units, a record high for the brand in India, following last year's figure of 48,500 units.

In recent news, Audi India launched the latest version of its flagship model, the Q8, priced at Rs 1.17 crore (ex-showroom). The company also celebrated a milestone of selling 100,000 cars in the Indian market over 15 years, a testament to the brand’s growing popularity and customer trust.

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