Red Sea conflict affects Audi India's supply chain
What's the story
The Red Sea crisis has taken a toll on the automotive supply chain, causing delays in car deliveries for Audi in India.
Speaking to PTI, Audi India head Balbir Singh Dhillon, expressed optimism that the situation would improve in the coming months.
However, he also admitted that these challenges would continue to impact the German automaker in the first quarter of 2024.
Delay expected
Delays in car deliveries expected to continue
Dhillon revealed that supply chain issues stemming from the Red Sea conflict would likely cause car delivery delays to persist through the quarter ending March 2024.
He mentioned that some Audi models have experienced delays of a few weeks.
The Red Sea has been a conflict zone since November 2023, with container ships facing attacks in the wake of the ongoing conflict between Israel and Hamas.
Electrifications
Electrification is Audi's primary agenda
Focusing on other aspects of Audi's plans, Dhillon emphasized that electrification is the brand's top priority.
In order to offer electric cars at more affordable prices in India, Audi is also considering assembling electric vehicles (EVs) locally.
Dhillon stated, "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."
Plans
Plans for locally assembling EVs in India
Further elaborating on plans for the local assembly of EVs in India, 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 toward that plan. We are very clear that the future for us is petrol and electric," he added.