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Porsche exploring ways to assemble SUVs in India with surge in demand: Report

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According to a report published on Tuesday, Porsche is considering to assemble its iconic Cayenne model in India in order to fulfill an unexpected rise in demand.    

According to the Economic Times, Porsche AG board members Detlev von Platen, executive board for sales and marketing, and Matthias Becker, vice president of region foreign and emerging markets, are in Delhi to meet with senior government officials.  

On Tuesday, they will meet with Invest India and Niti Aayog, according to the story, which cites sources.  

“Porsche is looking into the possibility of assembling the SUV (Cayenne) locally to take advantage of tax breaks and expand its footprint in this fast-growing space,” a senior executive in the know said on condition of anonymity.  

Porsche presently sells a range of imported automobiles in India, including the Macan, Cayenne, and Panamera, with ex-showroom costs ranging from Rs 88 lakh to Rs 1.84 crore.  

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The 2023 Porsche Cayenne facelift and Cayenne Coupe facelift made their Indian market debut in July. These models were released globally earlier this year, and interested buyers in India have been able to place orders since April.  

According to the research, the company’s sales in India increased 64% year on year to 779 units in 2022, with Cayenne accounting for nearly half of that.  

The Indian government charges a 100% duty on fully imported cars CIF (Cost, Insurance, and Freight) worth more than $40,000 and a 70% duty on those worth less. Customs charges on knocked down auto parts are reduced if they are assembled domestically. The prices are 15% to 35% less than the regular pricing.  

Porsche began growing its retail network in 2022. Porsche India launched two new stores in Bengaluru and Chennai in April 2023, as well as the doors to its freshly renovated facilities in Mumbai, Ahmedabad, and Kolkata.