Volkswagen plans to revisit its strategy for India amid geopolitical uncertainty in China and sees India as a potential growth market.
German automaker Volkswagen (VW) plans to revisit its strategy for the Indian market amid geopolitical uncertainty in China. VW sees India as a potential growth market and is considering expanding its product range, particularly in the SUV segment. The company has already invested 1 billion euros ($1.18 billion) in its Indian operations and plans to invest another 400 million euros ($472 million) in the next two to three years. VW currently has a market share of only 1% in India and lags behind competitors such as Maruti Suzuki, Hyundai, and Tata Motors.
VW’s renewed focus on India comes as the company faces increasing geopolitical uncertainty in China, its largest market. The Chinese government’s recent crackdown on technology companies has raised concerns among foreign businesses operating in the country. VW is particularly vulnerable because it has a significant presence in China through its joint ventures with local automakers. The company also faces increased competition from domestic Chinese automakers.
VW’s strategy for India will include a greater focus on electric vehicles (EVs). The Indian government has set a target of achieving 30% EV penetration by 2030, and VW sees this as an opportunity to expand its EV offerings in the country. The company plans to launch its first fully electric vehicle, the ID.4, in India in 2022. It also plans to introduce a range of electric SUVs, including the Audi e-tron, the Porsche Taycan, and the Volkswagen ID.6.
VW’s renewed focus on India is part of a larger effort to expand its global presence and reduce its reliance on the Chinese market. The company has set a goal of becoming the world’s largest EV manufacturer by 2025 and plans to invest 35 billion euros ($41 billion) in EV technology and infrastructure by 2025.
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