Porsche India plans to turn to CKD assemblies of Cayenne SUV when volumes grow

2011 Porsche Cayenne SUV

Porsche is the latest premium car maker who is now looking to import CKD kits of some of their products to assemble in India. The latest car maker to commence assemblies at its unit in India is Land Rover. Although, their flagship Range Rover is still imported as a CBU they’ve already started assembling products from the lower end of the product spectrum. Meanwhile, the Volkswagen Group too is planning to begin assemblies given the volumes increase over the coming years. As we know, VW owns Porsche and until now all Porsche vehicles were being imported in to the country.

Porsche hopes to increase sales of its Cayenne SUV which should make CKD assemblies of the Cayenne feasible for the car maker. Also, this means the price of the Cayenne will reduce as it now attracts just 10 percent import duties instead of 110 percent. This move should make the Cayenne a worthy proposition for buyers who are in the market for a premium SUV. Having said that Porsche is also planning to bring the latest generation of the iconic 911 sports car to India later next year. Porsche is also developing updated version of the Cayman and Boxster sports cars.

2012 Porsche 911 Carrera Cabriolet

Volkswagen’s manufacturing facility churns out sedans like the Audi A4, A6 and VW Passat while the low volumes Phaeton limousine and Audi R8 supercar are still being imported directly. VW now plans to follow a similar strategy with their group partner Porsche. Even with their entry-level brand like Skoda, the Volkswagen Group hasn’t been able to take the fight up to the big-wigs of the industry. The auto giant has a 5 percent share in India which includes Audi, VW, Porsche and Skoda.

Porsche also plans to officially enter the Indian market replacing the present importer Precision Cars India. Porsche India will then be a separate entity of the Volkswagen Group in India. This change is expected to happen next year. A dedicated team will be assigned the job of promoting Porsche products in India and will lead by the present head of sales at Audi India, Anil Reddi. He will take over as the managing director of Porsche India.

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November 30, 2011 | By Tushar Kelshikar · Tags:

Comments

One Response to “Porsche India plans to turn to CKD assemblies of Cayenne SUV when volumes grow”

Mohit Jain on November 30th, 2011 2:24 pm

Seems like a big news, but not as big as it sounds in my understanding. I don’t think there is gonna be a drastic drop in prices, atleast not directly in-line with reduced taxes once in CKD from CBU. Only real advantage I see is, less dependence on fo-ex fluctuations and hence prices(modest drop still, around 10%). Also, expedited car delivery times (current delivery time is anywhere from 3 months to 10 months). But a good news still, atleast for aspiring buyers.

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