European Auto Makers Volkswagen, Renault, Others Struggle to Grow Presence in India; Here’s Why

European car manufacturers, including Renault, Volkswagen and Skoda, continue to struggle to expand their market presence in India. The companies have been on a downward trend as sales in the last three financial years have declined, the Economic Times reported, citing data by leading global auto industry analytics firm JATO Dynamics. 

Significant Decrease in Sales 

The study mentioned that Renault witnessed the biggest sales dip in India, to 37,900 units in 2024-25 from 45,439 units in 2023-2024 and 78, 926 units in 2022-23. Skoda too was on a similar path with its sales in 2024-2025 stood at 44,866 units, marginally higher than 44,522 units in 2023-2024, but significantly down from 52,269 units in 2022-2023. Volkswagen recorded sales of 42,230 units in 2024-25, down from 43,197 units in 2023-24. The auto giant reported sales of 41,263 units in 2022-2023. 

“Initially, these brands focused heavily on sedans like Vento, Rapid, and Scala, which limit their exposure to the fast-expanding SUV segment,” JATO Dynamics India President Ravi G Bhatia told PTI. “They were slower in refreshing products lines, with many models remaining over extended periods. Network reach has also remained narrow, particularly in Tier 2 and Tier 3 markets, restricting access to a broader audience,” Bhatia added. 

While the European giants have witnessed sales decrease, Indian majors like Tata, Mahindra and Maruti Suzuki have captured market share via high localisation driven by frequent product launches, and early adoption of alternative fuel engines, including CNG, hybrids and BEVs. On the other hand, the European players lagged significantly behind in electric and hybrid offerings.  

Although these European giants are on the course correction path, they are yet to materialise anything. 

“There are signs of course correction. Skoda, for instance, recently launched the Kylaq, a subcompact SUV tailored for India,” JATO Dynamics president added.