Renault, Volkswagen & Skoda Fail To Expand In Indian Market; Last Three Financial Years See Decline In Sales

European mass market car manufacturers like Renault, Volkswagen and Skoda are unable to excel in the Indian market.

According to the industry data, in the last three financial years, they witnessed a decline in sales.

Renault's sales dipped significantly in India to 37,900 units in 2024-2025 from 45,439 units in 2023-2024, and 78,926 units in 2022-2023. This data was released by JATO Dynamics, a leading provider of data and analytics to the global automotive industry.

"Renault, Skoda, and Volkswagen faced several headwinds in India despite their tenure," JATO Dynamics India President Ravi G Bhatia told PTI.

Bhatia added, "They were slower in refreshing product lines, with many models remaining unchanged over extended periods. Network reach has also remained narrow, particularly in Tier 2 and Tier 3 markets, restricting access to a broader audience."

In 2024-2025, Skoda's sales were at 44,866 units, marginally higher from 44,522 units in 2023-2024, but down from 52,269 units in 2022-2023.

Volkswagen reported sales of 42,230 units in 2024-25, down from 43,197 units in 2023-2024. The brand had reported sales of 41,263 units in 2022-2023. Explaining why these brands have struggled in India, he said, "Initially, these brands focused heavily on sedans like Vento, Rapid, and Scala, which limited their exposure to the fast-expanding SUV segment."

India's "unique" tax structure also had a role to play, according to Bhatia. Sub-4-metre vehicles benefit from significantly lower levies. Bhatia said that while domestic OEMs like Tata, Mahindra, and market leader Maruti Suzuki are highly localised, product launches and adoption of alternative fuel engines like CNG, hybrids, and BEVs were quite helpful in boosting sales. European companies did not resort to this strategy.