By In a strategic move aimed at leveraging tax benefits and expanding its presence in the premium luxury SUV segment, Porsche AG, the renowned German car manufacturer, is contemplating the assembly of its flagship model, the Cayenne, within the borders of India. The development comes as a part of Porsche’s concerted efforts to tap into the thriving Indian automobile market. According to sources, high-ranking officials from Porsche AG, including Detlev von Platen, Executive Board Member for Sales and Marketing, and Matthias Becker, Vice President of Region Overseas and Emerging Markets, are presently in Delhi for discussions with senior government authorities. The primary agenda on the table is the prospect of initiating local assembly operations for the Cayenne, which is currently imported into India as a completely built unit (CBU).
One of the key driving forces behind this move is the substantial cost advantage Porsche could gain by adopting localized assembly. The Indian government imposes a hefty 100% import duty on cars with a value exceeding US$ 40,000, which is significantly mitigated when vehicles are assembled within the country using Completely Knocked Down (CKD) kits. This can lead to a substantial reduction in overall costs and, consequently, a more competitive pricing strategy for Porsche in the Indian market.
The Cayenne, a luxury SUV that exudes performance and sophistication, has already established a solid footing in India. According to recent reports, Porsche experienced an impressive 64% surge in sales during 2022, having sold a total of 779 units. Impressively, the Cayenne accounted for nearly half of this remarkable sales figure, underscoring the model’s popularity among Indian consumers who prioritize luxury, performance, and prestige.
Porsche’s potential decision to locally assemble the Cayenne in India is not only a testament to its commitment to the Indian market but also a strategic move that aligns with the country’s evolving automotive landscape. By leveraging tax benefits and catering to the preferences of Indian consumers, Porsche is poised to further cement its position as a leading luxury car brand in India while providing auto enthusiasts with an enticing blend of performance and opulence.
