Porsche will build its Cayenne SUV in India, using a plant owned by parent company Volkswagen in a move aimed at halving the import duty on the vehicle, according to media reports.

People familiar with the development said that Porsche would use the VW facility in the country to build the SUV as low volumes do not justify a separate plant.

 However, Ashish Chordia, CEO of Porsche India, denied any such plans, adding: “Porsche stands for ‘Made in Germany’ quality, and currently there are no plans of either assembling or manufacturing Porsches in India.”  

The Cayenne accounts for more than 65% of Porsche sales in India. By importing completely knocked down (CKD) kits and assembling them locally, the company could reduce the import duty on the vehicle to 40% from 113% applicable to completely built units (CBUs). 

Recently, Land Rover, the UK luxury carmaker now owned by the Tatas, announced plans to set up assembly operations in China and India for certain models. 

Last year Porsche sold 138 cars in India and has targeted 250 cars in 2010. It has opened dealers in Chandigarh, Kochi, Hyderabad, Chennai and Ahmedabad this year.