Now Audi Joins A Long List Of Carmakers To Ask For Lower Taxes On Premium Vehicles

German carmaker Audi told PTI in an interaction that high taxes on luxury cars in India were hampering growth in the segment. The government charges a 28 percent GST on luxury vehicles, apart from a 20 percent cess on sedans and a 22 percent cess on SUVs. Total taxes can go as high as up to 50 percent!

 In Picture: Balbir Singh Dhillon

Balbir Singh Dhillon, Head of Audi India, told PTI, “We haven't been able to utilise our capacities here to the fullest primarily because the luxury segment hasn't grown in the country. While the volume segments have been growing all these years, the luxury segment went up to 40,000 units a year and stayed in that range and this year we can end up even lower than that. The luxury segment has remained less than 2 percent of the overall passenger vehicle vertical. I think the major request we have for the government is to reduce the duties. Apart from 28 per cent GST, which in any case is high, we also have cess on top of it.”

Also See: Latest EVs In India

People buying Audis know the cost of the vehicles abroad and are hesitant to pay such a high price in India. The carmaker wants the government to introduce a standardised structure so that customers don’t end up paying multiple taxes that can sometimes even double the cost of a car.

Carmakers like Tesla, Mercedes-Benz, and Hyundai have not so long ago voiced similar concerns vis-a-vis import taxes. Tesla, for example, has been trying to bring its EVs here but for import taxes. 

When asked by PTI about EVs, Dhillon said the company needed to show more impressive numbers if it were to manufacture electric vehicles in India. The German carmaker has made investments in ICEs, and some of that capacity still remains unutilised to this day.