Volkswagen eyes India for small EVs after GST cuts
Volkswagen Group is exploring India as a launch market for its affordable small EVs, with CEO Oliver Blume citing GST cuts as a key attraction. The company showcased its new electric urban car family and sees opportunities across mass and luxury segments.
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Volkswagen Group is considering India as a key market for its upcoming small electric cars, with CEO Oliver Blume highlighting that the country’s recent cut in goods and services tax (GST) on automobiles has made the market significantly more attractive, PTI reported.
Speaking at the IAA Mobility event in Munich, where the company showcased its complete electric small car family for the first time, Blume said the tax reduction strengthens India’s position as a global automotive hub. “This helps a lot when you have lower taxes. When you have an attractive tax policy for automakers, that’s also attractive for the country and for the people,” he told PTI.
The German auto giant unveiled models under its electric urban car family, including the Volkswagen ID. CROSS Concept SUV, Skoda Epiq SUV, Volkswagen ID. Polo and CUPRA Raval. The project is aimed at developing entry-level EVs that bring sustainable mobility at affordable prices.
On India’s potential, Blume said that India is a fantastic market, and now it is 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.” He also pointed to opportunities for the group’s premium and luxury brands such as Volkswagen, Skoda, Audi, Porsche and Lamborghini, in the Indian market.
Blume described India as “fascinating” and underlined Volkswagen’s interest in building both mass-market EVs and luxury offerings tailored to local conditions.
