Hyderabad: German luxury cars manufacturer Porsche is currently conducting feasibility studies on a proposal to set up an assembling unit in India that would either bring down the cost of cars or improve margins, said a top official.
Foreign made cars imported into the country currently attract duties of up to 110% in India, which make the foreign carmakers import either completely knocked down (CKD) or semi knocked down (SKD) kits and assemble cars locally.
Talking to reporters in Hyderabad on Thursday after opening Porsche’s first dealer outlet in south India, its regional operations manager James Bourne said the decision on assembling facility in India will depend on the encouraging volumes.
He said the carmaker is overwhelmed by the response to its cars in India this year and hopes the country to contribute significantly to Porsche’s global sales going forward. “As against 94 cars sold in India last year, we have received orders for 269 cars this year by October end,” said Bourne.
However, he said he can’t comment on the quantity of volumes that would make Porsche consider an assembling facility in India or the timeframe to complete feasibility studies to take a call on the proposal.