Volkswagen, Europe’s largest car maker, says its group car sales in India are likely to be flat in 2024 amid new product launch plans.

The German automaker is projecting that the total volumes of the group in India in 2024 will remain at the previous year’s level. It recorded a 4 per cent growth in its sales in 2023 at 101,553 units compared with 97,610 units in 2022, according to Volkswagen Group’s Annual Report for 2023.

In India, total passenger vehicle (PV) sales rose to about 4 million units in 2023, an increase of about 10 per cent over 2022 sales.

In the Indian market, the Volkswagen Group sells cars under five brands — Škoda, Volkswagen, Audi, Porsche and Lamborghini. Škoda Auto Volkswagen India Pvt Ltd (SAVWIPL) is the company that represents the Group’s PV brands in India.

Acting local

“The Volkswagen Group thinks global, but acts local. Beyond the markets in China, North America and Europe, we also apply regional strategies in the growth markets of South America and India,” Oliver Blume, Chairman of the Board of Management of Volkswagen AG, said in the report.

The company said its SUV Taigun from the Volkswagen Passenger Cars brand and Kushaq from Skoda were the most sought-after group models in the Indian PV market. Also, Virtus from Volkswagen Passenger Cars and the Kodiaq from Skoda, which were introduced to the market as new or successor models earlier reported an encouraging demand.

Discussing opportunities and potential in various markets, the company said the demand for new vehicles is likely to increase in the coming years in India, which will be an “important future market” for Volkswagen, partly due to demographic change.

“The Volkswagen consolidated its activities in India and launched a model initiative with new models tailored to customers’ needs,” it said.

New line-up

The company, on Thursday, showcased a new refreshed line-up for the Indian market. To further boost the sales of Taigun, it is preparing to introduce a GT Plus Sport and GT Line variants of the SUV and bookings for the same have also commenced. With an eye on the electric vehicle (EV) segment, it also showcased the company’s all-electric car ID.4.

Volkswagen said it was continuing to explore a supply chain agreement with Indian automaker Mahindra & Mahindra for sourcing parts such as electric motors and battery cells for the company’s MEB platform for EVs.

The group’s Pune unit, with a production capacity of two lakh vehicles per year, manufactures Virtus and Taigun vehicles of the Volkswagen brand, and the Slavia and Kushaq vehicles from the Skoda brand. It also runs another facility at Aurangabad (Maharashtra), wherein cars of Skoda, Audi and Volkswagen are produced.