German luxury car company Audi will focus only on electric vehicles (EVs) by 2033 and stop producing cars powered by internal combustion engines (ICEs). Audi India chief Balbir Singh Dhillon said the company will stop production of existing ICE-powered models and switch to selling only EVs from 2033. Dhillon clarified that the company will make all existing models equipped with a petrol engine. They will be sold by 2032 and then shift to electric vehicles.
High tax company statement on car
Earlier, recently, there was also a statement from the company regarding the problems faced in the Indian market. A senior Audi official said in a statement that India’s luxury car market has huge growth potential, but the segment is under “pressure” due to high taxes on these vehicles and an unfavorable regulatory environment. Luxury cars account for less than two percent of annual passenger car sales. This category has been more or less at the same level for the last 10 years.
We have a lot of hope in India
Audi Regional Director (Foreign) Alexander von Waldenburg-Dressel said, “We believe in the Indian market. But it has not met our expectations from here. It is part of the BRICS countries and is considered as the second China. We still have high expectations from this market. There are
“It will take a little longer than what we expected from the Indian market 20 years ago,” he said. He said that the number of millionaires in India is very high. In that proportion, the segment of luxury vehicles is very less.
India lags behind many Asian countries
Waldenberg-Dressel said India lags behind many Asian countries in terms of growth in luxury car sales. He said, “I have been working in the Indian market for five years. I saw many assumptions, but the reality turned out to be completely different.
A maximum of 28% GST on luxury vehicles
He said that this constant change in policy and high taxes on luxury cars are hampering the growth of this segment. Currently, luxury cars attract GST at a maximum of 28 percent. Besides, there is an additional cess of 20 percent on sedans and 22 percent on SUVs. Thus, the total tax on these vehicles is about 50 percent.
