German automaking giant Volkswagen’s Chief Executive Officer (CEO), Oliver Blume, said that the European firm is looking at India as a potential market for its affordable small electric car segment and is currently in works with partners on how to introduce them in the nation, reported the news agency PTI on Sunday, 7 September 2025.
The company unveiled an all-electric small car family for the first time at the IAA Mobility event in Munich on Sunday. The Volkswagen executive also told the news agency that with the current GST cuts in the nation, the Indian market looks ‘more attractive’ to the company.
According to the agency report, the Volkswagen (VW) Group showcased cars like the Volkswagen ID. CROSS Concept, the Epiq SUV from the company’s Skoda brand, and other sister models like the Volkswagen ID. Polo and CUPRA Raval.
Volkswagen is facing tough competition from Chinese automakers and weak demand in the European market. Trade tensions related to the Trump tariffs have also been hard on the company’s Audi and Porsche brands.
What did VW’s CEO say?
Volkswagen CEO Oliver Blume said the company is working to create an entry-level electric vehicle lineup across its brands to offer affordable vehicle options to its customers.
Commenting on the Indian market, the CEO highlighted that the company is ‘sorting out’ bringing its small car offerings to India.
“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, reported the news agency.
Apart from focusing on the small car segment, the CEO also said that they are looking at prospects for the company’s premium and luxury brands in the Indian market, according to the agency report.
The Volkswagen Group owns brands like Volkswagen, Skoda, Audi, Porsche and Lamborghini.
Volkswagen on GST cuts
On the recent goods and services (GST) cuts in the Indian economy, Volkswagen CEO Oliver Blume said that the lower taxes would benefit both companies and people.
“This helps a lot when you have lower taxes. We are a company that stands for free and fair world trade,” said Blume, according to the agency report. “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,” he said.
Mint reported earlier that the small car segment (under 1,200cc) in India will now attract a lesser GST rate of 18%, while SUVs above 1,500cc will attract a rise in GST to 40%, compared to their earlier 28% levels.
