The disruption in the Red Sea has had a significant impact on Audi India’s automotive supply chain, as acknowledged by Balbir Singh Dhillon, the head of Audi India. Dhillon recently shared that the ongoing crisis has resulted in delays in car deliveries to customers in India. Nonetheless, Dhillon maintains an optimistic outlook, expressing confidence that the situation will improve in the near future.
Dhillon emphasised that the supply chain constraints resulting from the Red Sea crisis are expected to continue affecting car deliveries to customers in the first quarter of 2024. He acknowledged that various factors, including the recent crisis, have presented challenges for the company, leading to delayed deliveries for certain Audi models.
The crisis in the Red Sea, ongoing since November of last year, has led to attacks on container ships in one of the world’s most critical trade routes following the Israel vs Hamas conflict.
In addition to addressing the impact of the crisis, Dhillon provided insights into Audi India’s electrification strategy. He underscored the brand’s primary focus on electrification and disclosed that Audi is exploring the possibility of assembling electric vehicles (EVs) in India to enhance accessibility for consumers.
Dhillon expressed Audi’s commitment to the Indian electric car market, recognising that the adoption of electric vehicles in India is still in its early stages. Despite the current penetration of electric vehicles in the luxury car segment at around seven per cent, Dhillon remains optimistic about the potential for future growth. He noted that while Audi’s penetration in this segment is currently at three per cent, the brand aims to expand its electric car offerings in India in the near future.
When discussing plans for the local assembly of EVs, Dhillon stated, “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.”
In conclusion, the Red Sea crisis has presented challenges for Audi India’s automotive supply chain, affecting the delivery of cars to customers. Despite the disruptions, the company remains optimistic about the future and is focused on advancing its electrification agenda in the country. As Audi continues to navigate through these challenges, it aims to enhance its product offerings and potentially localize the assembly of electric vehicles in India.
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