Audi Planning to Exit From India?

[searchingheaven]

Its learnt that Audi is planning to leave India operations int he event of budget propsal to impose additional duty on completely knocked down (CKD) kit imports. As much as 60% custom duty would be applicable on the CKD units which now will be considered as completely built units.

More details in the link.

May even leave India if CKD duty is not rolled back: Audi - Moneycontrol.com -

 

[HoLySaTaN]

Re: Audi planning to exit India

I am not getting the scenario correctly now.

It was like CBUs had 60% import duties which when put together with other taxes came up to 110% of the car's price right?

If my above point is right, then almost all the car/bike manufacturers will be feeling the heat Looks like my dream of getting myself an Audi A4 3.0TDI Quattro will remain a dream forever

What happened to the Free Trade Agreements that have been rumoured to be signed with European countries & Japan?

 

[krish199]

Re: Audi planning to exit India

I personally feel its a gimmick by AUDI. They have a large customer base in India, and quiting business here would mean a big hole in there global sales pie.

On the other hand I think its a good move by govt. After all Audi is a luxury brand. And people who can afford an AUDI wont be bother about 50% price hike. If AUDI wants to make it cheap lets them open setup here and bring down the price.

 

[Akash]

Re: Audi planning to exit India

I just read in todays newspaper (ET) about the expansion plans and future strategy of Audi. They are looking to expand their sales to upto 4000 units a months. I am sure this isjust a gimmick by Audi to attract some attention.

 

[bmwrockzz]

Re: Audi planning to exit India

What? oh no then even my dream of owning Audi R8, A8 and Q7 will remain a dream if Audi exits Indian Market, Akash are you sure its a gimmick / false news or some kind of rumors? coz if this happens then I would go mad at the government of india, I'm angry with these laws grrr... Ab Main Kya Karo?

 

[AMG]

Re: Audi planning to exit India

What? oh no then even my dream of owning Audi R8, A8 and Q7 will remain a dream if Audi exits Indian Market, Akash are you sure its a gimmick / false news or some kind of rumors? coz if this happens then I would go mad at the government of india, I'm angry with these laws grrr... Ab Main Kya Karo?

The R8, Q7 and A8 are already CBUs and wont be impacted.

The A4, A6 and Q5 will be bear the brunt.

 

[searchingheaven]

Re: Audi planning to exit India

These are the models that are most sold in India.

 

[type-r]

Re: Audi Planning to Exit From India

this will be the most ridiculous thing Audi can ever do. India is the most upcoming market now.

 

[cooldhaya]

Re: Audi Planning to Exit From India

I don think Audi will be that foolish to leave India at this time , nowadays i am seeing more of Audi's than Bmw's and Merc's! But their sales will get an impact if that law remains , will this see Audi opening a manufacturing plant in India?

 

[aneeshs]

Re: Audi Planning to Exit From India

I dont think Audi would exit India . They cant afford to loose such a growing market like India.

 

[350Z]

Re: Audi Planning to Exit From India

Most terrible move a car manufacturer can ever think about. In the period when many other automakers are deciding to competitively grab hold of car market shares in India, Audi India speaks about quitting the country? Huh. Absolutely agree with the above statement by Krish. If they are concerned so much about implementation of additional duties, let them come and set up the full manufacturing plants here itself.

Drive Safe,
350Z

 

[350Z]

Re: Audi Planning to Exit From India

Update! Government has announced that Engines and Gearbox will attract a duty of 10% as CKD while Pre-assembled Engine and Gearbox will have to bear 60% of import duty. Now many volume players like Honda, Skoda and Toyota are on safer side but we have to see whether Audi would quit the market or decide to stay and change their importing strategies.

Drive Safe,
350Z

 

[bmwrockzz]

Re: Audi Planning to Exit From India

@Vibhor hai, I had come across a link on CNBC TV18 I will post the link within a few hours. It clearly explains what GOVT of India means on the defination of CKD.

 

[bmwrockzz]

Luxury carmakers to breathe easy as govt clarifies on CKD

Luxury carmakers to breathe easy as govt clarifies on CKD

The Finance ministry has issued a clarification on Completely Knocked Down definition row. CKD will now include only kits with pre-assembled engine, gearbox, reports CNBC-TV18’s Aakansha Sethi.

The matter has been something that the auto industry has been up in arms against. This latest revision in definition is going to help matters for luxury makers. Car makers like Toyota, Skoda, Volkswagen, BMW, Audi can all heave a sigh of relief since only kits with a pre-assembled engine or gearbox which is imported will qualify as CKD.

In cases where individual components are imported such as an engine or a gearbox, and where there is value addition or indigenization in manufacturing, there will only be a 10% duty and these will not be included in the CKD definition. Only a few models are now likely to come under the Finance Ministry’s CKD definition which will have to pay a 60% duty.

Source:Luxury carmakers to breathe easy as govt clarifies on CKD - CNBC-TV18 -

Ps sorry Vibhor its the same kind of news that you posted if you feel like deleting it please go ahead, sorry once again.


Duty On Assembled Cars Up

Duty on ‘partially’ assembled cars is set to rise from the current 10 percent to a much higher 30 percent. This is due to a change in the definition of what constitutes an assembled (Completely Knocked Down)or imported (Completely Built Unit) car.

The chaos was kicked off by a budget notification which sought to re define what an assembled or CKD car constituted. What it proposed, in essence, was that cars would not be deemed assembled unless sub assemblies like engines and gearboxes were also put together.

This would mean that some expensive cars assembled in India like BMW’s and Audis would leap from a lower taxation level of 10 percent straight to a massive 60 percent; ie the same rate attracted by fully imported cars that rolls off a ship. This obviously caused much confusion.

The finance minister yesterday however rolled back the proposed rate for these ‘partially’ assembled cars to 30 percent. This of course only applies to cars assembled here with fully imported engines and gearboxes. This of course means that the SKD or Semi Knocked Down definition and duty structure could well and truly be back.

As a result, cars like the BMW 3 Series or Audi A4 could on average cost between two to three lakhs more, depending on the model. Mercedes however, who has been assembling engines in India from for years, are likely to escape falling under this definition for both the C Class and the E Class.

Source Duty on assembled cars up | Autocar India

 

[Umang]

Re: Audi Planning to Exit From India

hey buddy thanks for posting but it doesnt mentions whether AUDI will quit or stay?