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Volkswagen eyes India for affordable small EVs amid GST boost



<p>At the show, the company presented its all-electric small car portfolio for the first time, featuring the Volkswagen ID. </p>
<p>“/><figcaption class= At the show, the company presented its all-electric small car portfolio for the first time, featuring the Volkswagen ID.

German auto major Volkswagen Group is exploring India as a key market for its upcoming family of small electric cars, CEO Oliver Blume said on Sunday, adding that the recent rationalisation of GST on automobiles makes the country even more attractive for global automakers.

According to PTI, speaking on the sidelines of the IAA Mobility 2025 in Munich, Blume said, “India is a fantastic market, now the third biggest in the world. We see potential in India. We are sorting out what we can do with partners and also bringing a small car to India.”

Volkswagen at IAA Mobility 2025

At the show, the company presented its all-electric small car portfolio for the first time, featuring the Volkswagen ID. CROSS Concept SUV, Skoda Epiq SUV, Volkswagen ID. Polo and CUPRA Raval. The models form part of its “electric urban car family”, aimed at offering affordable entry-level sustainable mobility across brands.

Blume noted that the group also sees growth prospects for its premium and luxury marques in India, which include Audi, Porsche and Lamborghini.

On the recent GST reform, which lowered rates on small cars to 18 per cent from 28 per cent, he said, “This helps a lot when you have lower taxes. We are a company that stands for free and fair world trade. When you have an attractive tax policy for the automakers, that’s attractive for the country and for the people.”

Volkswagen Group is already represented in India through its Volkswagen and Skoda brands, and is now weighing how best to introduce its electric small cars in collaboration with partners.

  • Published On Sep 8, 2025 at 08:11 AM IST

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