Audi India CEO urged for lower GST on Electric Vehicles

The CEO of Audi India, Balbir Singh Dhillon, stated that a lower goods and services tax on electric vehicles is required till their volumes reach an adequate level and the business can sustain itself.

He also stated that hybrid vehicles are not now part of the company’s strategy for the country, with the focus remaining only on petrol and electric versions.

Dhillon stated that subsidies are required for the expansion of the EV segment “until we reach a reasonable penetration level.” He also stated that his predictions were based on a “gut feeling,” not data.

“There is no science behind this; it’s just a gut feeling that maybe by the time we reach 50% in the luxury (electric) space, we require that support (lower GST) and thereafter it is driven by itself,” he told me.

Currently, the overall tax incidence on hybrid vehicles in the country is 43%, including GST, whereas battery electric vehicles are taxed at approximately 5%.

Dhillon remarked that a lower GST will assist in accelerating the adoption of electric vehicles.

When asked about Audi India’s EV sales projections, he responded, “Probably in the midterm… next 5-6 years from now, at least, we intend to go close to 40-50% by 2030.”

Electric vehicles now account for only 3% of Audi’s total sales in the country. To meet its ambitious sales goal, the manufacturer wants to extend its product lineup and introduce more cheap vehicles.