There has been a global slowdown in electric vehicle (EV) sales, which has also had an impact on India. However, Audi India president Balbir Singh Dhillon said this is temporary and the industry will grow over time.

Global passenger EV sales growth rates are expected to be noticeably slower over the next few years. Electric car sales will grow at an average of 21% per year over the next four years, compared to an average of 61% between 2020 and 2023, according to BloombergNEF’s Long-Term Electric Vehicle Outlook.

Audi plans to become a fully electric car brand by 2033. “A lot of incentives have been given to the industry in the past… Whenever incentives are rolled back, you will always see this slowdown happening. But I think all this is temporary,” he said during the online session of the 22nd Hindustan Times Leadership Summit.

“We are running a marathon. This is not a sprint,” he said.

In a conversation with Ravi Krishnan, editor-in-chief of Mint, Dhillon emphasized that a solid charging infrastructure and strong government support will be key to successful EV adoption in India.

Audi India needs a certain minimum electric car sales volume threshold in India before it can start assembly and production of electric vehicles (EVs) in the country, he said.

The luxury automaker currently imports its entire EV portfolio available in the country comprising Audi Q8 50 e-tron, Audi Q8 55 e-tron, Audi Q8 Sportback 50 e-tron, Audi Q8 Sportback 55 e-tron, Audi e-tron . tron GT and Audi RS e-tron GT. The company believes that by 2030, 40-50% of luxury cars sold in India will be electric vehicles.

However, the company needs a certain number of sales before it can consider producing electric vehicles in India. “You should not forget that even if we sell a car in the country, we have to service that car for 10-15 years. Therefore, there is a minimum threshold required for us to make this decision,” Dhillon said.

For customers, resale value as well as pricing concerns are two major concerns. Dhillon said uncertainty about finding fast charging points, especially during intercity travel, was a source of fear for many customers. Audi India has installed 140 charging points across its dealerships. There is also a “MyAudi” application that directs drivers to the nearest active charging points on their route.

But building a robust charging infrastructure is a challenge. “First of all, geography,” Dhillon said. “At the end of the day, there will always be a limitation for us because we are not a charging infrastructure company.”

Dhillon said that in countries with high electric vehicle penetration, such as Norway and Iceland, strong charging networks and consistent government policies are key to success. “There were very strong incentives not only for car buyers, but also for manufacturers and charging infrastructure companies. “For this reason, most OEMs have established their own charging networks by establishing connections with charging infrastructure companies,” he said.

In India, Dhillon said the central government’s decision to reduce the goods and services tax (GST) on electric cars from 28% to 5% has helped a lot. “What we expect from the government is a stable policy with which we can plan the next 3-5-10 years,” he said.

Some interventions are still needed to encourage adoptions. For example, state governments are withdrawing concessions on EV registrations. “Suddenly, when these kinds of incentives are removed, you see customers shying away from buying vehicles,” he said.

The Delhi government withdrew road tax exemption for electric vehicles earlier in September this year, causing electric vehicles to become 10% more expensive in the capital. Telangana has also replaced the road tax exemption for electric cars with an 11-15% tax in 2023.

Apart from this, Dhillon added that government policy that addresses charging infrastructure and having a single platform or application for charging will benefit the industry. “The most important issue is whether there is a way the government can help improve high-speed charging infrastructure across the country,” he said.