Volkswagen is considering launching its small electric cars in India in the near future. The company has unveiled its ID. Cross electric concept car at the IAA Mobility 2025 in Munich, which previews an electric compact SUV similar in size to the T-Cross or Taigun. Volkswagen AG also showcased the Skoda Epiq SUV, along with sister models like the Volkswagen ID. Polo and Cupra Raval.
According to Volkswagen Group CEO Oliver Blume, the reduction of tax rates on automobiles under the GST 2.0 makes the Indian automotive market more attractive. Blume stated that the company is mulling the plan to bring its small electric car models to India, which would offer affordable and sustainable mobility. The company has been working on entry-level electric mobility across its various brands, including a project called the electric urban car family.
Blume highlighted India as a fantastic market, now the third largest in the world, with great potential for Volkswagen’s premium and luxury brands. The company currently sells passenger vehicles under brands such as Volkswagen, Skoda, Audi, Porsche, and Lamborghini in the Indian market. Blume praised the Indian market, stating that it is very fascinating, especially with the lower taxes. He emphasized that an attractive tax policy for automakers is beneficial for the country and its people.
The introduction of small electric cars in India would be a significant move for Volkswagen, as the company seeks to expand its presence in the Indian market. With the reduction in tax rates, the company believes that it can offer competitive pricing for its electric vehicles, making them more appealing to Indian consumers. As the Indian market continues to grow, Volkswagen is poised to capitalize on the increasing demand for electric vehicles, with its affordable and sustainable mobility solutions.
Volkswagen’s plan to launch small electric cars in India is a strategic move, considering the country’s growing importance in the global automotive market. The company’s focus on entry-level electric mobility and its electric urban car family project demonstrates its commitment to providing affordable and sustainable solutions for Indian consumers. As the Indian government continues to support the growth of the electric vehicle market, Volkswagen is well-positioned to take advantage of the opportunities in this rapidly evolving market.