German auto giant Volkswagen Group is aiming to secure a 5% share of India’s passenger vehicle market before the end of the decade, with alternative fuel technologies expected to play a central role in that strategy, a senior company executive said on Thursday.
The group—whose India operations are managed by Skoda Auto Volkswagen India Pvt Ltd—had earlier set a target of achieving a 5% market share by 2025 under its India 2.0 strategy led by Škoda Auto. However, disruptions such as the COVID-19 pandemic derailed those plans. At present, the company holds a market share of around 2.5% in India.
Speaking on the sidelines of the unveiling of the updated Volkswagen Taigun SUV, Managing Director and CEO Piyush Arora said the revised target remains firmly in place, albeit with a new timeline.
“In the last two to three years, we have reassessed our medium-term aspirations. We are currently just under 2.5% market share and will need strong product interventions to reach 5%. That is what we are actively working on,” Arora said.
He added that future growth will be driven by a mix of internal combustion engine (ICE) models and alternative fuel vehicles, including electric vehicles (EVs), with the latter expected to be introduced before the end of the decade. The company is also evaluating opportunities in compressed natural gas (CNG) offerings.
While investments for the next phase will be largely product-focused, Arora noted that the group has yet to finalise a specific outlay.
On the broader market outlook, he said geopolitical tensions in West Asia have introduced uncertainty, though operations remain unaffected so far. Prior to the conflict, the Indian passenger vehicle industry was expected to grow by 6–7% in 2026. However, stronger-than-anticipated growth in the first quarter and the evolving geopolitical situation make projections less certain.
“If the conflict is resolved quickly, the industry could see growth exceeding current estimates,” he said, adding that the group aims to outpace overall market growth through new product launches.
Highlighting the importance of the Taigun in the company’s India portfolio, Volkswagen Passenger Cars India Brand Director Nitin Kohli said the SUV has been a key contributor to the brand’s expansion in the segment.
“The new Taigun builds on a strong foundation, offering sharper design and meaningful upgrades across key areas,” Kohli said, adding that the brand remains committed to “democratising” premium technologies and features.
He also pointed to sustained market momentum following recent tax reforms, noting that the company’s annual sales have stabilised at around 40,000 units. Volkswagen plans to maintain growth momentum through consistent product updates, with a new launch or upgrade expected every quarter. Deliveries of the latest Taigun are set to begin later this month.
(With inputs from PTI)