Saturday March 23, 2019
Home Business Audi India se...

Audi India sees flat sales in 2018 following duty hike

Audi India expecting a flat sale in the ongoing year due to increase in cess and hike of custom duty

0
//
Audi
Audi. Pixabay

Luxury carmaker Audi India, which had looked at a double-digit growth this year, is now expecting that sales will be flat in 2018, following an increase in cess and hike of customs duty on some imported auto components announced in the Union Budget, an official said here on Friday.

“Initially, we are planning for a double-digit growth in 2018 and now we are expecting a flat year for several reasons. Cess increase in September last year and customs duty hike as announced in the budget were not favourable steps for us though introduction of GST (Goods and Services Tax) was a great move,” said Rahil Ansari, head of Audi India.

“However, we have measures in place to not have a flat year,” he added.

The German carmaker’s 95 per cent volume comes from cars that are assembled in India and it has invested substantially in the past years in the country and will keep on investing as it believes that India remains “a strategic market”, he said.

Audi India sold 7,876 units in 2017, a growth of two per cent over sales of previous year.

Representational image for Audi
Representational image. Pixabay

On duty hike and cess increase, he said: “These were not favourable developments for the luxury segments. The recent changes (hike in cess and customs duty) within such a short span of time are not favourable for long term planning. We need more consistency in terms of policies.”

“We are assembling models like A3, A4, A6 (Sedans) and SUVs models of Q3, Q5 and Q7. These models account 95 per cent of our volume,” Ansari said, adding that the company wants to achieve profitable growth.

According to him, the carmaker has requested the government to implement more favourable policies and has been in touch with them for a relook at the recent customs hike.

“We do expect some revisions,” Ansari said, adding that about a 10 per cent dip in taxation could lead to a 25 per cent sales growth in the luxury car market in India.

Also Read: Electric Cars: The Newest Trend In India

The carmaker is also looking at expanding its portfolio in A and Q range including “the entry level” in India to make luxury cars more affordable, he said.

It may consider introducing the hatchback cars in its portfolio in the next two-three years as customers’ perceptions have been changing, Ansari said.

The carmaker has increased prices of its cars by an average of 3.8 per cent from this month after the customs duty hike, he said.

On electric vehicles (EVs), Ansari said: “We would be in a position to launch electric vehicles in India by latest 2020. Globally, Audi will launch three EVs by 2020. Electric vehicle is the future but we see how the development in terms of infrastructure will happen.”  IANS

Next Story

HP Considering India as a Key Focus Area

India is key focus area, 3D printers next big thing

0
HP India
HP unveils 65-inch gaming display with soundbar at CES 2019. Flickr

India is a very attractive market with high brand recognition for a computer hardware producer like HP, said HP Inc’s President for Asia Pacific and Japan, Tian Chong Ng.

The Asia Pacific region — in which India is a key focus area — has been the fastest growing for HP and provided 16 per cent revenue growth last year.

In Q1 of FY2019 it registered 8 per cent growth year-on-year, said Ng in the course of the HP Reinvent 2019 conference, the company’s largest global partner event.

One reason for that is — India – and also the Asia Pacific region — tick marks on demographics trends which provide clear wins for HP: rapid urbanisation and more millennials are joining the work force.

While HP is very positive on India and recognises its potential, there are no plans yet for setting up a manufacturing base in India. Ng said it already has a manufacturing base in China apart from others in Vietnam, Thailand and Japan.

HP
HP. (IANS)

“There is an existing ecosystem in China and we don’t have plans for setting up a manufacturing base in India, he said.

One focus area is the 3D printer, which offers HP great opportunity. Construction and automotive sectors are the focus areas here. Meanwhile, an MoU has been signed with the Andhra Pradesh government.

“To be successful in India demands that we understand it,” he said.

Also Read- Social Networking Giant Facebook Stored Users’ Passwords in ‘Readable’ Form

HP is also pushing gaming in a big way. However, this has not led to any thinking for manufacturing mobile phones in India, despite the high number of gamers in the country spurred by affordable android phones and cheap data.

“Our strength is the PC business and we offer a whole family of products in that space,” Ng said. (IANS)