New Delhi: Continued support in terms of lower GST for electric vehicles is necessary till the volumes reach an appropriate level and the industry can sustain on its own, according to Audi India Head Balbir Singh Dhillon. He noted that hybrid cars are not currently part of the company's strategy for the country and the focus firmly remains on petrol and electric models. Dhillon said subsidies are needed for the growth of the EV segment, "till the time we reach a decent penetration level".
"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," he added. Currently, the total tax incidence on hybrid vehicles in the country is 43 per cent, which is inclusive of GST, while battery electric vehicles attract a tax of about 5 per cent. Dhillon noted that lower GST will help faster adoption of electric vehicles.
When asked about Audi India's sales expectation from the EV segment, he stated, "Probably by midterm..next 5-6 years from now, at least, we intend to go close to 40-50 per cent by 2030.
" The electric vehicles currently account for just 3 per cent of Audi's overall sales in the country. The automaker plans to expand the product range, and add affordable models, to achieve its ambitious sales target. The company is however yet to firm up plans as to which nameplates could be introduced in India over the next few years.