Volkswagen is in concrete talks about partnering up on passenger car production in India, the group's finance chief said on Thursday, adding it was tough to earn money in the market that still presents a "clear" opportunity.

"We are in very good discussions," Arno Antlitz told the Reuters Events Automotive Europe conference in Munich, "it's very, very concrete," he added.

"I think we shouldn't underestimate the potential in India in terms of a market ... and in terms of regulatory uncertainty between the U.S. and China. I'm very positive about India," said Antlitz.

The comments come after Volkswagen in February signed a supply agreement with India's Mahindra on the use of key electric components of the German carmaker's open platform for electric vehicles.