Audi India faces supply chain challenges due to Red Sea Crisis, expects recovery in coming months

Audi India’s automotive supply chain is being adversely affected by the ongoing crisis in the Red Sea, as explained by Balbir Singh Dhillon, the head of Audi India.

According to HT Auto, Dhillon stated that the crisis is impacting the delivery of German carmaker Audi’s vehicles to customers in India. Despite the challenges, he expressed optimism that the situation would improve in the coming months, though he acknowledged the possibility of delayed deliveries continuing through the current quarter ending in March 2024.

Dhillon emphasized the brand’s commitment to electrifying its vehicles, making it the primary agenda for Audi India. He mentioned the consideration of assembling electric vehicles (EVs) in India as a strategy to offer more affordable cars to the Indian market.

“As of now, it is at a very nascent stage, but this is like a marathon, we have to run for a long period of time,” Dhillon said. “We’re also evaluating, at some point in time, we need to assemble these cars also in India. It is not decided yet when and how, but I think more information will come in the future. But we are moving towards that plan. We are very clear that the future for us is petrol and electric.”

Dhillon estimated that EVs currently constitute approximately 7% of India’s luxury car market.

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