Archive · 28 Jun 2025
Skoda-VW India's Growth Plan Stalls Amid Market Challenges
The Volkswagen Group invested in India with a plan to increase its car sales.
They launched new car models, but their market share hasn't grown as much as they hoped.
Initially, they removed some old car models, which caused sales to drop.
Then, new SUVs and sedans boosted sales for a while.
However, sales decreased again recently, and their market share stayed low.
One reason might be that their cars were too expensive for the Indian market.
Recently, a new small SUV did well, boosting sales.
Overall, the plan hasn't met its goals yet.
Skoda-VW India's 'India 2.0' project, launched in FY19, aimed for 5% market share but reached only 2% in FY25.
The project began with phasing out older models, leading to declining sales initially.
New models like the Kushaq and Taigun led to a sales revival in FY22 and FY23.
Sales declined in FY24 and slightly further in FY25, resulting in a stagnant market share.
Analysts attribute the slowdown to a competitive market and potential mismatch in product design.
- Who
- Skoda Auto Volkswagen India, along with automotive analysts.
- What
- Skoda-VW India's 'India 2.0' project is experiencing slow growth in the passenger vehicle market.
- When
- The project began in FY19 and the analysis covers performance through FY25.
- Where
- India
- Why
- The project is falling short of its goals due to a competitive market and potential mismatch between product design and local expectations.
Automotive Analysts
Skoda Executives
Market Competition
Automotive Analysts
They highlight a competitive market as a key reason for the slowdown.
Skoda Executives
They highlight a competitive market as a key reason for the slowdown.
Product Design
Automotive Analysts
Analysts suggest a potential mismatch in product design and local expectations.
Skoda Executives
Analysts suggest a potential mismatch in product design and local expectations.
- Project Name
- India 2.0
- Investment
- 1 billion euros
- Original Market Share Goal
- 5% by 2025
- FY25 Market Share
- 2.02%
- Total Passenger Vehicles Sold in FY25
- 4.3 million
- Skoda FY18 Sales
- 17,387 units
- Skoda FY25 Sales
- 44,868 units
- Volkswagen FY18 Sales
- 45,329 units
- Volkswagen FY25 Sales
- 42,230 units