Exploration of India's market potential for compact electric vehicles finds GST reduction an enticing factor, according to Volkswagen Group CEO

Volkswagen AG, the German automotive conglomerate known for its brands like Volkswagen, Skoda, Audi, Porsche, and Lamborghini, has expressed its enthusiasm for the Indian market, particularly in the context of electric vehicles (EVs).

On Sunday, Oliver Blume, CEO of Volkswagen, made a statement praising India's development and referring to it as a "fantastic market." He also commented on the recent reduction of Goods and Services Tax (GST) on automobiles in India, stating that it makes the Indian automotive market more attractive to Volkswagen.

Blume, who also heads the group's project for electric urban mobility, mentioned that they have been working on entry-level electric mobility across their various brands. This project, known as the electric urban car family, was showcased for the first time at IAA Mobility, where Volkswagen presented an all-electric small car family.

However, no specific models from Volkswagen's electric urban car family were mentioned to be coming to India, and no details about the timeline for their introduction were given. What is known is that Volkswagen is working with partners to bring a small car to India, although the identity of these partners remains undisclosed.

India, currently the third-largest automotive market, is seen as a potential market for Volkswagen's electric urban car family. Blume expressed prospects for the group's premium and luxury brands in India as well.

Volkswagen AG's collaboration with Tata Motors in India is aimed at optimising the introduction of its most affordable electric microcars on the market. The VW Group showcased the ID. CROSS Concept SUV from Volkswagen brand, Skoda Epiq SUV, Volkswagen ID. Polo, and CUPRA Raval under its electric small car family at IAA Mobility.

It's worth noting that the Mahindra BE 6 electric car, priced between ₹ 18.9 - 28.54 Lakhs, is already available in the Indian market. However, it remains to be seen how Volkswagen's entry into the Indian EV market will impact the current landscape.

As the world moves towards a more sustainable future, the interest of global automotive giants like Volkswagen in the Indian market bodes well for the future of electric vehicles in India.