Buyers are not available from Reno, Volkswagen and Skoda vehicles, why do not European cars do not like Indians?
Europe The leading auto brands of Reno, Volkswagen and Skoda are having a lot of papad to sell their cars in the Indian market. However, despite this, success is not available. The sales data of trains show that the sales of these companies have declined in the Indian market in the last three financial years. According to JATO Dynamics providing data and analysis to the global vehicle industry, Reno’s sales have declined the most in the Indian market. The company’s sales in the Indian market declined to 37,900 units in 2024-25. The figure was 45,439 units in 2023-24 and 78,926 units in 2022-23. Similarly, Skoda’s sales in the Indian market were 44,866 units in 2024-25. This is a nominal higher than the 44,522 units of 2023–24. However, the 2022–23 figures are much lower than the 52,269 units. On the other hand, Volkswagen brand sold 42,230 vehicles in 2024–25. In 2023-2024, the company had 43,197 units and 41,263 units in 2022-2023.
Due to these reasons, the sale of vehicles fell
JATO Dynamics India President Ravi Ji Bhatia said, Reno, Skoda and Volkswagen are facing many challenges in India. Describing the reason for the struggle of these brands in India, he said, initially, these brands focused a lot on the sedan -vento, rapid and scala. Due to this, their reach to the rapidly growing sports utility vehicle (SUV) segment was limited. Bhatia said, with this, these brands remained slow in changing their product line. Many models did not change for a long time. Their network access has also been limited, especially in the second and third category markets. Due to this, these brands could not reach a large consumer class.
Compact SUV also shocked
Bhatia said that apart from this, India’s specific tax structure has also increased the problem of these brands. A vehicle less than four meters in India gets a very low fee. Bhatia said, this benefited the original equipment manufacturers (OEMs) of Japanese and South Korea, who are known for an affordable compact car. In contrast, European brands traditionally make large models and struggle to make competitive offer within this range. Under the current policy, passenger vehicles (petrol, CNG, LPG) with a length of up to four meters and engine up to 1200 cc are charged 28 percent goods and service tax (GST) and one percent cess.
Companies could not understand the mathematics of tax
European car companies could not understand the mathematics of road tax in India. This has also caused losses to these companies. India has a length of up to four meters and passenger vehicles (diesel) with engine up to 1500 cc and three percent cess. A passenger vehicle with a length of more than four meters and 1500 cc engine capacity is 28 percent GST and 17 percent cess. On the other hand, SUVs with a length of more than four meters and engine more than 1,500 cc are charged 28 percent GST with 22 percent compensation cess.
Latest business news
