The Porsche Cayenne is the German marque's best selling vehicle in India.

A reader e-mailed me the other day pretty excited about news he had heard of Porsche’s expansion into the Indian market. I think, more than anything, he wanted this little tidbit confirmed by someone other than himself.

Porsche talked late last year about the possibility of opening a manufacturing facility in India, not only to serve the rapidly expanding Indian market but the entire middle East region.

In December of 2006, Porsche opened their first dealer in New Delhi. Since then, they have dedicated resources and support for what is arguably one of the most important emerging global markets.

One of the larger issues are the duty fees applied to imports. For example, the Cayenne, which is Porsche's best selling vehicle in India, costs $114,000 after a 112 percent import duty is applied. Talk about markup! The same vehicle sells for $65,300 in Germany. So, if Porsche sets up shop in India, such duties would become a thing of the past, thus vastly reducing the price of their vehicles.

India's infrastructure is such that it does not support vehicles very well. Congestion and poor road conditions don't make for a very pleasant driving experience. Maybe that's why the Cayenne sells so well there?

It’s exciting for Porsche fans in that part of the world. Over time, India's economy and infrastructure can only get better. I think Porsche wants to be positioned to take advantage when that time comes.

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Readers have left 2 comments.

1. Untitled
Ryan, Unregistered

Great info. Porsche is smart to expand into India, that Country is growing like crazy.
One of the richest countries in the world!

\n This e-mail address is being protected from spam bots, you need JavaScript enabled to view it ' title='Click to send email'>Posted 2008-04-03 20:31:24

2. Competition is the key
Editor, Super Administrator

Porsche is definitely reacting to it's competitors. All of the European auto makers
have committed to expansion, with countries like India on the top of their lists.
Like Ryan said, India is growing like crazy, with Porsche fans not only benefitting
from a closer locale but great pricing to boot.

\n This e-mail address is being protected from spam bots, you need JavaScript enabled to view it ' title='Click to send email'>Posted 2008-04-04 08:35:42

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