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Running a marathon, not a sprint: Audi India head on global EV adoption
Audi India head Balbir Singh Dhillon emphasised that a robust charging infrastructure, and strong government support would be key to successful EV adoption in India.
There has been a global slowdown in electric vehicle (EV) sales with some impact in India as well. However, this is temporary and the industry will grow over a period of time, Balbir Singh Dhillon, head, Audi India, has said.
Growth rates of global passenger EV sales are expected to be visibly slower in the next few years. According to BloombergNEF’s Long-Term Electric Vehicle Outlook, electric car sales will grow at an average of 21% per year in the next four years, compared to the average of 61% between 2020 and 2023.
Audi plans to become a fully electric car brand by 2033. “A lot of incentives have been given to the industry in the past… whenever the incentives are taken back, you will always see this slowdown that happens. But I think all of this is temporary,” he said at an online session of the 22nd Hindustan Times Leadership Summit.
“We are running a marathon. It is not a sprint,” he said.
In conversation with Mint’s editor-in-chief Ravi Krishnan, Dhillon emphasised that a robust charging infrastructure, and strong government support would be key to successful EV adoption in India.
Audi India needs a certain minimum threshold volume of electric car sales in India before it can start assembling and manufacturing electric vehicles (EVs) in the country, he said.
The luxury carmaker currently imports its entire EV portfolio available in the country, which comprises the Audi Q8 50 e-tron, Audi Q8 55 e-tron, Audi Q8 Sportback 50 e-tron, Audi Q8 Sportback 55 e-tron, Audi e-tron GT and Audi RS e-tron GT. The company believes that 40-50% of luxury cars sold in India will be EVs by 2030.
However, the company needs a certain number of sales to consider manufacturing EVs in India. “You have to keep in mind that even if we sell one car in the country, we have to service that car for 10-15 years. So, a minimum threshold is required for us to take that decision,” Dhillon said.
For customers, charging anxiety, as well as resale value are two key concerns. The uncertainty of finding fast charging points, especially during intercity travel is a fear for many customers, Dhillon said. Audi India has set up 140 charging points at their dealerships. They also have a “MyAudi” application, which guides drivers to their nearest active charging points on their route.
However, setting up a robust charging infrastructure is a challenge. “First and foremost is geography,” Dhillon said. “There will always be a limitation for us that we at the end of the day are not a charging infrastructure company.”
In countries with high EV penetration, such as Norway and Iceland, strong charging networks and consistent government policies have been the key to success, Dhillon said. “There were very strong incentives, not just to the car buyers, but to the manufacturers, as well as to the charging infrastructure companies. So, most of the OEMs tied up with charging infrastructure companies and set up their charging network,” he said.
In India, Dhillon said that the central government’s decision to reduce the goods and services tax (GST) on electric cars to 5% from 28% has helped a lot. “What we expect from the government is a stable policy where we can plan for 3 to 5 to 10 years ahead of us,” he said.
There are still some interventions required to push adoptions. For instance, state governments withdrawing concessions on EV registrations. “Suddenly when these kinds of incentives are withdrawn, you see customers shying away from buying the vehicles,” he said.
The Delhi government withdrew its road tax waiver for EVs earlier in September this year, making EVs 10% costlier in the capital. Telangana also replaced a road tax exemption for electric cars with a levy of 11-15% in 2023.
Other than that, government policy addressing the charging infrastructure, and having a single platform or app for charging would benefit the industry, Dhillon added. “The most important topic would still be if there is a way the government can help improve the high-speed charging infrastructure across the country,” he said.
