Volkswagen India all set for a HUGE COMEBACK! Will they Triumph?

The Volkswagen Group was able to stabilize their sales post the merger of Volkswagen India Pvt Ltd and Škoda Auto India Pvt Ltd into Škoda Auto Volkswagen India Pvt Ltd as part of their ‘India 2.0’ project in the year 2019. This merger was necessary for the VW to consider as the demand for their vehicles gradually decreased. The company now operates two manufacturing plants and other assembly facilities, in Maharashtra with an annual capacity of 2,00,000 vehicles.

After their merger, the company discontinued their pre-existing models and introduced new cars in the market. From VW, new Virtus and Taigun were launched and Škoda launched the new Slavia and Kushaq between the years 2021 and 2022. With the launch of new cars, both brands saw a significant increase in their sales. But, since 2022, apart from some minor variant updates, we have yet to hear about something big from the group.

Now, as Volkswagen Group moves towards their ‘India 2.5’ project, we are expecting a big move coming from the group.

Klaus Zellmer, CEO of Škoda Auto Global, during his interview in Prague (Czech Republic), described India as a ‘Predator Market’. With Škoda Auto Volkswagen India Pvt Ltd set to commence on their ‘India 2.5’ journey soon, the group is actively looking to find a partner in the Indian Auto Sector to help them penetrate the market even better. This new partnership will help the group to achieve its goal of 5 percent market share by the year 2030.

Zellmer said that “The European cars are often ‘over-engineered’ which may not be required in India”, due to which their cars come at a premium. To cater to the country’s unique demand, they need to find an already established entity that will help them understand the market better and produce competent vehicles. He also mentioned that the group’s future plans will depend on the partnership it forms in the Indian Market.

Now it remains to be seen with whom this partnership will prevail. If they are successful in finding a partner, this will mark the third partnership in the Indian Auto Sector after Maruti-Toyota and MG-JSW.

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