New mantra for price cut, assemble top-end SUVs in India

Automakers are aggressively planning to assemble their top-end imported SUVs in India in view to reduce their price tag that might help them to grab more market share. The carmakers who are willing to commence assembling of their SUVs in India include Volkswagen, Audi, BMW, Tata-Land Rover, Renault and Hyundai.

At present, a top-end imported SUV attracts 110 per cent duty that makes the price above Rs 40 lakh. If the imported vehicles (SUVs) are assembled here, they will only attract 65 per cent duty, consequently placing it at the sub-Rs 30 lakh price band. This is the main reason behind the new step to be taken by luxury SUVs makers. According to sources, Audi Q3, BMW X1, Land Rover Freelander, Renault Koleos and Volkswagen Tiguan will be assembled in India very soon. Audi began assembling of its luxury SUV Q5 in India recently and is looking forward to include Q3 for the same. A strong contender of BMW X1, Audi Q3's world launch is expected next year.

The upcoming top-end SUVs will be loaded with advanced features like all wheel drive, traction control, all side airbags, sun-roof, automatic gearbox hill and descent control and is likely to be priced competitively, if assembled here. The new SUVs will have to compete with the likes of Nissan X-Trail, Ford Endeavour, Honda CR-V, GM Captiva and Mitsubishi Outlander.