Porsche is planning to start assembly operations in India for Cayenne SUV, which will bring down the import duties by more than half.
People familiar with the project have said that the car maker may utilise parent Volkswagen’s facility in the country for the assembly of the top selling sports utility vehicle. Ashish Chordia, CEO of Porsche India, has denied any such upcoming plans of the company.
“Porsche stands for ‘Made in Germany’ quality, and currently there are no plans of either assembling or manufacturing Porsches in India, ” he said.
The two people familiar with the plans said that Porsche, which will merge with VW next year, is planning to assemble only Cayenne, which accounts for more than 65% of Porsche sales in India.
If this happens, it will be Porsche’s first such operation outside Germany. At present, Porsche manufactures its vehicles at its plants in Zuffenhausen and Leipzig. By assembling the vehicles in India, Porsche can bring down the import duty to 40% from 113% applicable to completely built units (CBUs).
Last year Porsche sold a total of 138 cars and plans to sell 250 units in 2010. The company sells all its models in India including the 911, Boxster⁄Cayman, Cayenne and Panamera range in the country.
Priced between Rs 65 lakh to 1.27 crore, the Cayenne is the highest selling petrol SUV in the premium luxury segment. Porsche will launch the all-new diesel variant of the Cayenne by end July.