Geisel Auto NewsVolkswagen is planning to launch an entry-level electric SUV in India by 2030, Piyush Arora, CEO of Volkswagen Group India, said at an event there, Reuters reported.Arora”We are actively developing an electric vehicle for the entry-level market and are evaluating which Volkswagen platform is the most suitable for manufacturing a compact electric SUV in India,” said the German company. He stressed that in order to ensure the rationalization of hundreds of millions of dollars of investment, the new electric vehicle (ELECTRIC VEHICLE) must be able to achieve large-scale sales.
Currently, electric vehicles only have a 2% market share in India, while the government has set a target of 30% by 2030. Still, analysts predict that electric vehicles could only account for 10 to 20 percent of total sales by then.”In India, the popularity of electric vehicles will not be as fast as expected, so in order to justify the investment, we are considering the possibility of export of this product,” Arora said.He further explained that Volkswagen Group is focused on electric vehicles because they enjoy a more favourable tax regime in India. He also mentioned that the company might consider introducing hybrid models if it gets government support. In India, the tax rate for electric vehicles is only 5%.hybrid vehicleThe tax rate is as high as 43%, slightly lower than the 48% tax rate for gasoline vehicles.The Volkswagen Group plans to export the new electric car to Southeast Asia, Arora said.Gulf Cooperation Council(GCC) countries and the North African market, as well as its exports of gasoline-based models. He also said the country is becoming more competitive in the global market with changes in Indian regulations and safety standards, which will reduce the effort required to produce export-oriented vehicles. Volkswagen Group, and its competitorsMaruti SuzukiLike Hyundai Motor, Maruti Suzuki sees India as an important export base. Volkswagen’s exports have grown by more than 80%, and Skoda’s have grown by about four times so far this fiscal year.Arola also mentioned that the company is conducting extensive testing of the Skoda Enyeq electric SUV in preparation for a potential launch in the Indian market, but has not yet set a specific time.
Post time: Feb-19-2024