- Audi expects the disruptive situation in its supply chain to improve in the coming months.
Balbir Singh Dhillon, head of Audi India, said the ongoing crisis in the Red Sea is impacting the automotive supply chain. Speaking to PTI, Dhillon said the crisis has affected the German luxury automaker's vehicle deliveries to Indian customers. However, he also expressed his hope that the situation will improve in the coming months.
The Audi India chief also hinted that delays in deliveries to customers will continue in the current quarter till March 2024. “We also face a variety of factors from time to time, most recently due to the situation in the Red Sea and the supply chain constraints we will face in the first quarter of 2024. The first quarter has been difficult for us, but the coming months will be “We expect it to recover,” he said. Dillon noted that deliveries of some Audi models to customers are currently delayed by several weeks.
Also read: Next-generation Audi Q7 to debut in 2026.
Container ships have been under attack in the Red Sea, one of the world's most important trade routes, in recent months since November last year following the conflict between Israel and Hamas.
Regarding other aspects of the automaker's strategy, Dillon said electrification is a key challenge for the brand. Dhillon said Audi is considering the possibility of assembling EVs in India in order to sell them more cheaply in the country. Audi has already entered the electric vehicle market in India and is now aiming to intensify its efforts in this area. Asked about the traction of electric vehicles in India, Dhillon was quoted as saying, “We are at a very early stage at the moment, but this is like a marathon and we have to run it for a long time.”
He was informed that the penetration rate of electric vehicles in the luxury car segment in India is around 7%, adding, “Our penetration rate is 3%, but most of our products in the luxury car segment of electric vehicles are coming to an end. “I have,” he added. INR1.2 billion today.''He also added that in the future, Audi plans to launch many new products across the world, some of which will be introduced in India as well.
Regarding plans to assemble EVs locally, he said, “We are looking at the need to assemble these vehicles in India at some point.” We haven't decided when or how, but we're moving toward that plan, and I'm sure we'll have more information in the future. It is clear that the future for us is gasoline and electricity. ”
First edition publication date: February 11, 2024, 13:06 PM (IST)
