Detlev von Platen, executive board for sales and marketing at Porsche AG – on his first visit to the Indian sub-continent – said he is keen “to learn’ about the market here. “There is a very strong momentum in India. We don’t think of challenges, we think of opportunities. India is one of the fastest growing economies in the world. A lot of big companies are interested in coming to India. Education levels have changed dramatically in the last 10 years. And you see also the wish of India to welcome investments, to invest not just in education but also infrastructure and in things which are very relevant for the future, for us which is sustainability…That’s clearly one of the reasons why we have a strong focus on India”, Platen said.
The company, however, does not have any short to medium term plan for start of local assembly in India. The focus is on establishing and strengthening the brand in India.
Platen elaborated Porsche is looking at ‘value-oriented growth in the market here. “We are heavily focusing on developing our presence in India with our partners. We are not developing (in) the classical way a dealership but want to create destinations where our customers, men and women, can feel and recognise the quality behind it. For us, it is more important first to establish a strong credibility in our brand and position it clearly as a unique luxury brand”, he informed.
Porsche – which grew volumes by 64% last year to 779 units – currently has 8 dealer partners in India. The company plans to have a total of 10 partners by the end of the ongoing year. Platen said he, however, does not see India as as emerging market where everything has to be established. “India is a leading country in terms of software and IT development. We are here first to learn, establish our brand, be credible. We are here on a long term basis”, he informed. Separately, Platen said Porsche has received encouraging response in its electrification journey in India. As much as 10% of the company’s sales in the market here last year came from EV Taycan. “We were very happy to see that the (all electric) Taycan, which was also introduced to India, became very successful…and accounts for more than 10% of our deliveries in India. We see a good acceptance of the (EV) technology”, he said. Globally, Porsche is working on electrifying 50% of its portfolio by 2025. And thereafter, increase it around 80% by 2030.
In India, the company plans to introduce the all electric Macan in 2024. The company will also introduce its first electric two-door sports car 718 by the middle of the decade, followed by an all new electric Cayenne.
Platen, however, said how fast electric mobility takes off in India would also depend on infrastructure developments in terms of charging systems and charging infrastructure.
Overall, the company is bullish about growth prospects in India considering the profile of its target customers. ”We have about 4,000 active customers in India, but we are also looking at young customers for the future, especially Gen Z. For us, creating this relationship, creating specific events, bringing our potential customers in contact with Porsche in a different way as a luxury experience is our focus,” he said.
The average age of the Porsche customer in India is already 10 years lower compared to Europe. The average age of the Porsche buyer in Europe is around 50 years.