Audi India evaluates local electric vehicle manufacturing

Audi India is evaluating the feasibility of locally manufacturing a battery-electric vehicle (BEV) in India. A final decision on the production plan is expected within the next few months. This move is part of an aggressive expansion strategy to increase the company’s luxury car market share from approximately 8% to between 15% and 16% over the next three to five years.

To support this growth, Audi plans to introduce new product launches, enhance customer engagement, and expand its dealership network into Tier-II and Tier-III cities. The company is also monitoring the potential India-European Union free trade agreement (FTA), which could allow Audi to import more models to gauge customer demand before committing to local production for specific vehicles.

Local manufacturing is viewed as a way to mitigate the impact of high import duties on fully built luxury electric vehicles, thereby improving the commercial viability of Audi’s electric portfolio in the Indian market.