European Auto Giants Struggle to Shift Gears in India Market
European automotive brands Renault, Volkswagen, and Skoda face challenges in the Indian market with declining sales in recent years. Factors such as limited SUV offerings, slow model updates, and India's unique tax structure have hindered their growth. However, new strategies focusing on exports and compact vehicles suggest a path to recovery.
- Country:
- India
European automotive titans Renault, Volkswagen, and Skoda are experiencing significant hurdles in establishing a strong foothold in the Indian market, with their sales declining over the past few years, according to industry data analyzed by JATO Dynamics.
Renault witnessed a sharp decrease, with sales plummeting to 37,900 units in 2024-2025, compared to 45,439 units in 2023-2024 and 78,926 units in 2022-2023. Skoda's sales showed slight fluctuations but remained below previous highs, while Volkswagen also reported decreased sales figures, reaching 42,230 units in 2024-2025.
Challenges for these brands include their historical emphasis on sedan models, slower product line refresh cycles, and limited reach in growing markets. Additionally, India's tax policies favoring smaller vehicles have benefited Japanese and Korean manufacturers. Yet, signs of strategic shifts, like Skoda's launch of the Kylaq SUV and a focus on export-oriented and cost-effective platforms, hint at potential for turnaround.
(With inputs from agencies.)
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