IAA Mobility 2025: Volkswagen sees India as a potential market for small EVs

Volkswagen is looking at India as a potential market for the company's affordable small electric cars. The German automotive giant is claimed to be working with partners on how to best introduce them in the market. Interestingly, Volkswagen has just unveiled its ID. Cross electric concept car at the IAA Mobility 2025 in Munich, which previews an electric compact SUV, similar in size to the T-Cross or Taigun. Besides that, Volkswagen AG also showcased the Skoda Epiq SUV with sister models like Volkswagen ID. Polo and Cupra Raval.

PTI has quoted Volkswagen Group CEO Oliver Blume saying that the reduction of tax rates on automobiles under the GST 2.0 makes the Indian automotive market, already the third largest, more attractive. He also said that post this move and as the group already presented an all-electric small car family in its entirety for the first time at IAA Mobility, Volkswagen is mulling the plan to bring these models to India.

Blume also said the group has been working on entry-level electric mobility across its various brands to offer affordable, sustainable mobility under its project called the electric urban car family. "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," he said, while also adding that the company is seeing prospects for its premium and luxury brands in India.

The Volkswagen AG currently sells passenger vehicles under brands such as Volkswagen, Skoda, Audi, Porsche and Lamborghini in the Indian market. Speaking about the Indian market, Blume said that it is a very fascinating market. "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 and that's also attractive for the country and for the people," Blume said while speaking about GST reduction.

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