Volkswagen keen to apply for new EV policy, awaits government clarification

Volkswagen India, which is part of the Skoda Auto Volkswagen India Private Limited, is keen to apply for the new EV policy, a senior company official told Business Today.

According to Ashish Gupta, Brand Director, Volkswagen India, the company will apply but is awaiting clarifications on the new EV policy.

The new EV policy, also known as the Scheme For Promoting the Manufacturing of Electric Passenger Cars in India (SPMEPCI), aims to attract foreign automakers by seeking an investment of $500 million. "Once the government clarifies the EV policy, we will apply for it," said Gupta, adding "With the global headwinds that are happening right now we still have to wait and watch what the final EV policy will be."

Notably, Volkswagen India doesn't anticipate any significant impact from the 25% tariff imposed by the Trump 2.0 administration on the automotive industry.

Gupta said the company's India subsidiary doesn't export any models to the US. "Short term, I don't see any impact coming to us for our business in India. But of course, this entire thing that is going on globally, the impact on the geopolitics, and the tariff structure, it's a lot of white noise right now. We have to let the white noise settle. We have to see where the market settles in," says Gupta.

Regarding the allegations related to $1.4 billion tax evasion by Volkswagen India, Gupta says the company abides by the laws in India. "We as a global corporate and a global citizen, I think we abide by the rules and regulations in every country, and that's what we have done in India as well," said Gupta.

Meanwhile, Volkswagen on April 14 unveiled the Tiguan R-line at a starting price of Rs 48.99 lakh. Tiguan R-line is the third generation of Volkswagen's Tiguan SUV. The company discontinued Tiguan last month.