Volkswagen In Talks To Partner On Production Of Cars In India: Reuters

(RTTNews) - German automaker Volkswagen AG (VWAGY.PK) is in concrete talks to partner on production of cars in India, Reuters reported citing Chief Financial Officer Arno Antlitz.

According to him, the Indian market has clear potential, though its difficult to make money there due to demand for less expensive, entry-level cars with lower profit margins.

"I think we shouldn't underestimate the potential in India in terms of a market ... and in terms of regulatory uncertainty between the U.S. and China," he said.

The company currently operates two factories in India, which accounted for about 1 percent of its global deliveries last year, with 101,553 vehicle deliveries.

Earlier, Skoda, a Volkswagen brand, announced plans to design and manufacture an all-new compact sports utility vehicle for the Indian market in the first half of 2025.

Volkswagen in February signed a supply deal with Indian automaker Mahindra on the use of key electric components of the German company's open platform for electric vehicles.

As per the report, Volkswagen's brands aim for a 5 percent share of the Indian car market by 2030.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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