Skoda-Volkswagen looks to double sales volumes by 2025

The owner of Skoda, Volkswagen, Audi, Porsche, and Lamborghini brands plans to sell around 300,000 cars across the brands by 2025, they said. It targets selling more than 180,000 units this calendar year and 190,000 units in 2024.

The group sold 134,667 cars including exports in 2022.

Piyush Arora, managing director and chief executive of Skoda Auto Volkswagen India, said it has a stated objective of 5% share of India’s passenger vehicle market by 2025. “We were a little below 3% this year. That’s the path we want to follow, to gain more market share this year in our journey of trying to achieve 5% by 2025,” he told ET.

Arora declined to comment on specific volume targets.

After reaping the benefits of its ‘India 2.0’ strategy, under which it developed products for India and global markets, Skoda-Volkswagen is set to launch India 2.5, one of the persons cited above said.

“After a long hiatus and a lot of back and forth, the top management from the German major has given go-ahead for India 2.5 strategy, that would mean there would be a few more products to excite the Indian market over the next two years,” the person said. Ramping up of export volume to benefit from the low-cost structure of Asia’s third-largest economy would augur well for economies of scale, he added.

Arora said the company is looking at opportunities in the segments where it’s present now as well as above and below that “whether you call it 2.5 or any other product opportunity based on the given platform”.

Higher projected volume for Indian production plants by 2025 shows India operations are expected to get more resources and products, especially on the EV side, said one of the persons cited above. All the brands of the group posted double-digit growth during 2022, albeit on a low base.