The ongoing crisis in the Red Sea has been affecting Audi India's automotive supply chain, explained Balbir Singh Dhillon, the head of Audi India.

According to the Indian automotive news outlet HT Auto, Dhillon said that the crisis is impacting the German carmaker’s deliveries to customers in India, but he expressed hope that the situation will get better over the next few months. He also suggested that delayed deliveries to Indian customers could continue through the current quarter that ends March 2024.

“We are also challenged from time to time by various factors,” Dhillon said. “Very recently, because of the Red Sea situation, there is a supply chain constraint that we’re facing in quarter one of 2024. It is challenging for us in the first quarter, but we expect to recover in the coming months.”

While discussing other aspects of Audi India’s plan, Dhillon added that electrifying the brand’s vehicles was its main agenda. He also said that Audi is considering assembling EVs in India to provide the country with cheaper cars.

“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,” 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 towards that plan. We are very clear that the future for us is petrol and electric.”

Dhillon estimated that EVs currently make up about 7% of India’s luxury car market.