Balbir Singh Dhillon, director of Audi India, in an interview with CNBC-TV18, said that the customer base is getting younger and the luxury car market is expanding.
He added that despite tax challenges, the desire for luxury vehicles has increased. Dhillon addressed several topics, including the luxury electric vehicle market and efforts to bring the newly introduced Audi Q6 e-tron to India as quickly as possible.
Read also: Road tax exemption for hybrid cars to continue in Uttar Pradesh: sources
Here is the edited version of CNBC-TV18’s interview with Audi India’s Balbir Singh Dhillon:
Q: How is the luxury car market in the country and what changes have you observed in recent years?
TO: A few years ago, luxury cars were mainly purchased by high-net-worth individuals and businessmen. However, the market has expanded significantly. Today, many executives and professionals in their thirties and forties also buy luxury vehicles.
Post-pandemic, the demographics of luxury cars have changed – more people are entering the market at a younger age, either with new or used vehicles. In fact, 42% of the cars we sell are to people under 40, reflecting this noticeable shift in India.
Q: What is driving this change, given the higher taxes we are experiencing?
TO: Taxes are a challenge, but let me first highlight the positives. The post-pandemic era has embraced a “YOLO” (You Only Live Once) mentality, which encourages people to spend rather than just save. With the rise in international travel, people have seen premium luxury cars abroad and want to own them when they return.
However, taxes remain a major hurdle for the luxury segment as we face some of the highest tax rates in the industry. For instance, almost 50% of the price of our cars is made up of GST and CESS, which is comparatively high relative to other markets in India and South East Asia.
Q: How are you shaping your brand strategy and how has the Audi brand evolved in recent years?
TO: Our brand strategy is customer-centric. We have evolved by focusing on sporty models and various body types. For example, we introduced the Sportback version of the Audi e-tron, which was well received. Following that success, we launched a Sportback version of the Q3, and now one-third of our Q3 sales come from this model. We were also among the first to introduce luxury electric cars in India.
Q: Talking about electric vehicles, when can we expect the Audi Q6 e-tron to enter the Indian market?
TO: There is a lot of anticipation for the Q6 e-tron. We are working diligently with our headquarters and have announced that the vehicle will be launched on the market at the end of this year or early next year. The vehicle has already been unveiled and we are making final preparations for its arrival.
Q: What is your strategy for electric vehicles (EVs) in India?
TO: Demand for luxury electric vehicles is spread across the country, not just in big cities but also in smaller ones like Chandigarh and the eastern and southern regions. High-end electric cars are sold across the country.
Currently, EV penetration in the luxury segment is around 6%, and our share is around 3% as we focus on high-end models priced above Rs 1.2 crore. As adoption increases, we are addressing the challenges related to the transition from internal combustion engines to EVs.
Q: How are you addressing the challenges of the transition from internal combustion engines to electric vehicles?
TO: As an industry, we are working collectively to improve charging infrastructure. For example, we have installed more than 140 chargers across the country, not only at Audi dealerships but also at dealerships of our brands. We have one of the largest EV charging stations in BKC, equipped with 450 kilowatt hours and multiple charging points.
In addition, our Audi Connect app now features a dedicated section for EV customers, with access to over 2,000 high-speed chargers. As EV technology advances, with ranges extending to 500-600 kilometres, we continue to address concerns about resale value and battery life through effective communication, giving customers confidence in the longevity and value of their vehicles.
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