Automotive giant Volkswagen Group looks at India as a possible market for their small electric vehicles, as stated by the CEO.

Volkswagen Eyeing India for Affordable Electric Car Segment

Volkswagen Group, the multinational automotive corporation that owns brands like Volkswagen, Skoda, Audi, Porsche, and Lamborghini, is considering India as a potential market for its affordable small electric car segment.

This move comes amidst tough competition from Chinese automakers and weak demand in the European market, as well as trade tensions related to the Trump tariffs that have been hard on Volkswagen's Audi and Porsche brands.

In an effort to boost sales, the company is working to create an entry-level electric vehicle lineup across its brands, with Volkswagen CEO, Oliver Blume, at the helm.

Recently, the small car segment in India received a boost with a lesser GST rate of 18%, making the market more attractive to companies like Volkswagen. However, SUVs above 1,500cc will attract a rise in GST to 40%, up from the earlier rate of 28%.

Volkswagen showcased several electric vehicle concepts at the IAA Mobility event in Munich, including the Volkswagen ID. CROSS Concept, the Epiq SUV from Skoda, and other sister models like the Volkswagen ID. Polo and CUPRA Raval.

While specific partners for introducing small electric vehicles in India are not yet mentioned, Volkswagen collaborates with partners in battery production and electric vehicle development. Their battery joint ventures and technologies are aimed at electric small cars like the ID.Polo and ID.Cross, implying collaboration in Europe and other markets.

Volkswagen CEO Oliver Blume stated that the company stands for free and fair world trade and that lower taxes are beneficial for the company. He also mentioned that the recent goods and services (GST) cuts in India will benefit both companies and people.

In addition to its focus on small electric cars, Volkswagen is also looking at prospects for its premium and luxury brands in the Indian market, according to an agency report.

The third biggest market in the world, according to Volkswagen's CEO, could soon see the arrival of affordable, electric vehicles from the German automaker. Whether this will be the case remains to be seen, but it's clear that Volkswagen is serious about expanding its presence in India.

Automotive giant Volkswagen Group looks at India as a possible market for their small electric vehicles, as stated by the CEO.