Porsche exploring ways to assemble SUVs in India with surge in demand: Report

German sports luxury car manufacturer Porsche is planning to assembly of its iconic model, Cayenne, in India in an attempt to meet with an unprecedented surge in demand, a report said on Tuesday.   

Porsche AG board members Detlev von Platen, executive board for sales and marketing, and Matthias Becker, vice president of region overseas and emerging markets, are in Delhi to meet senior government officials, the Economic Times report said. 

Their schedule includes meetings with Invest India and Niti Aayog on Tuesday, the report said quoting sources. 

“Porsche is examining possibilities to locally assemble the SUV (Cayenne) to avail of tax benefits and expand its footprint in this fast-growing space,” a senior executive in know said on condition of anonymity. 

Porsche currently sells a selection of imported vehicles in India, which includes the Macan, Cayenne, and Panamera, with prices ranging from Rs 88 lakh to Rs 1.84 crore ex-showroom. 

In July, the 2023 Porsche Cayenne facelift and Cayenne Coupe facelift made their official debut in the Indian market. These models were launched globally earlier this year, and interested buyers in India have had the opportunity to place their orders since April. 

The company’s sales in India grew 64 per cent year-on-year to 779 units in 2022 with Cayenne accounting for almost half of it, the report said. 

The Indian government imposes 100 per cent duty on fully imported cars CIF (Cost, Insurance and Freight) valued more than $40,000 and 70 per cent on those costing less than the amount. If locally assembled, customs duties on knocked down auto parts come at a discount. The prices are 15-35 per cent lower than the standard price. 

In 2022, Porsche started expanding its retail network. In April 2023, Porsche India inaugurated two new showrooms, one and Bengaluru and the other one in Chennai, and opened the doors to its newly renovated facilities in Mumbai, Ahmedabad and Kolkata. 

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