Porsche explores local assembly of Cayenne in India amidst lofty demand: Report
Porsche intends to commence a local assembly of its Cayenne model in India to fulfil growing demand.
Porsche, the prominent German luxury sports car manufacturer, is intending to commence local assembly of its iconic Cayenne model in India, driven by a phenomenal wave in demand. According to a report released on Tuesday, the move aims to align with this escalating demand.
Detlev von Platen, an executive board member responsible for sales and marketing, and Matthias Becker, the vice president supervising regions overseas and emerging markets at Porsche AG, are momentarily in Delhi for meetings with senior government officials. Their agenda incorporates sessions with Invest India and Niti Aayog.
A senior executive told that Porsche is evaluating options for on-site assembly of the Cayenne SUV to capitalise on tax advantages and extend its presence in this rapidly expanding sector. At present, Porsche offers a range of imported vehicles in India, including the Macan, Cayenne, and Panamera, with prices spanning from ₹88 lacks to ₹1.84 crore ex-showroom.
The 2023 Porsche Cayenne facelift and Cayenne Coupé facelift were officially presented to the Indian market in July. These models had their global launch earlier in the year, and forthcoming buyers in India have been able to place orders since April.
In 2022, the company underwent a tremendous 64 per cent year-on-year growth in sales in India, totalling 779 units. The Cayenne model was accountable for nearly half of these sales.
India imposes a 100 per cent duty on fully imported cars with a CIF (Cost, Insurance, and Freight) value exceeding $40,000 and a 70 per cent duty on those valued below that amount. Assembling vehicles locally impacts discounted customs duties on knocked-down auto parts, eventually directing to prices that are 15 to 35 per cent lower than the standard rates.
Porsche’s retail network evolution began in 2022, with considerable expansions continuing into 2023. In April 2023, Porsche India inaugurated two new showrooms, one in Bengaluru and the other in Chennai. Further, it disclosed reconditioning facilities in Mumbai, Ahmedabad, and Kolkata, strengthening its existence in the Indian market.
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