Volkswagen and Skoda Turn Their Attention to India's Growing Auto Market

A generation ago, Western carmakers looked to China as the great untapped market. Now, with China’s auto sector increasingly crowded and dominated by local players, Volkswagen and its Czech brand Skoda are setting their sights on India instead.

The two brands are reportedly weighing fresh investments in the South Asian country, following a pattern familiar from the China boom years: a huge population, rising incomes, and a government pushing for electrification. For Volkswagen Group, India offers a chance to build a manufacturing and sales footprint outside its traditional strongholds.

Skoda has already acted as the group’s lead brand in India, and any new spending would likely expand that role. Details of the planned investment have not been fully disclosed, but the direction is clear — the group sees India as a long-term growth engine rather than a short-term play.

The move comes as global automakers reassess their strategies in Asia, where Chinese brands have gained ground at home and abroad. Whether Volkswagen and Skoda can replicate their earlier success in a new market remains an open question, but their interest in India signals where the next phase of competition is likely to unfold.