Porsche Cayenne may be assembled in India

Porsche, Germany based leading car maker, is planning to bring the assembly operations of its Cayenne sports utility vehicle in the Indian market. The move will reduce the import duty on the Cayenne SUV by 60 percent. It is also speculated that Porsche may use the Indian facilities of its parent Volkswagen for this assembly operation as low volumes do not justify establishment of a separate facility.

However, Porsche India has denied working on any such plans. Porsche stands for ‘Made-in-Germany’ quality, and at present company has no plans of either assembling or manufacturing Porsche in India, said Ashish Chordia, CEO of the company in a statement given to a leading news daily in India.

The Porsche Cayenne is one of the most popular car of the company in India and it accounts for more than 65 percent of the sales of the company in the country. If company brings the assembly operations to India , it will be the first time when it will perform such an operation outside Germany as the company manufactures all of its cars at its plants in Zuffenhausen and Leipzig, till now. The current import duty on the completely built units (CBUs) of Cayenne SUV's is about 113
percent, which can be reduced to mere 40 percent if the company decides to import it in completely knocked down (CKD) kits.

Porsche had started its operations in the Indian market in Year 2004. It managed to sell 138 cars in the year 2009 and aims to sell 250 cars in the current year. The company sells about 32 models in the Indian market which includes  911, Boxster/Cayman, Cayenne and Panamera range of car. It has opened five new dealerships in India this year including Chandigarh, Kochi, Hyderabad, Chennai and Ahmedabad.

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