Porsche, the well-known German luxury sports car manufacturer, is considering a new plan: they’re thinking about starting to build their famous Cayenne model right here in India. And the reason behind this idea? It’s all because of an incredible increase in demand for their cars. A report that came out on Tuesday shared that Porsche wants to make sure they can keep up with this growing demand.
Two important people from Porsche, Detlev von Platen and Matthias Becker, are currently in Delhi to talk with important government officials. They’re planning to meet with Invest India and Niti Aayog on Tuesday. These discussions are all part of Porsche’s effort to make this local assembly plan a reality.
Someone in the company who didn’t want to be named said, “Porsche is thinking about making the Cayenne SUV right here in India. This way, they can take advantage of some tax benefits and also become even more present in the fast-growing car market.”
Right now, Porsche sells cars in India that are imported from other countries, including models like the Macan, Cayenne, and Panamera. These cars are quite expensive, with prices ranging from ₹88 lakh to ₹1.84 crore.
The updated 2023 Porsche Cayenne and Cayenne Coupe were just introduced to the Indian market in July. These models were launched worldwide earlier in the year, and people in India have been able to order them since April.
Last year, in 2022, Porsche sold a lot more cars in India compared to the previous year – a whopping 64 percent increase. They sold a total of 779 cars. And guess what? Almost half of these were Cayenne models.
In India, if a car is fully imported and costs more than $40,000 including shipping and insurance, there’s a huge 100 percent tax on it. If it’s cheaper than that, the tax is still high at 70 percent. But if the cars are assembled locally, the taxes are much lower, thanks to some special rules about importing car parts. This can make the prices of the cars 15 to 35 percent less than the regular prices.
Porsche has been expanding its stores in India since 2022, and they’re continuing to do so in 2023. In April 2023, they opened two new showrooms – one in Bengaluru and another in Chennai. They also improved their facilities in Mumbai, Ahmedabad, and Kolkata, all to make their presence in the Indian market even stronger.