European car major Volkswagen may drive more global models into India

European car major Volkswagen on Monday launched its most expensive offering in India - the Tiguan R-Line starting at ₹48.99 lakh (ex-showroom) - and is also aiming to bring in more global models in the coming year. This comes as the global auto major is trying to position itself as a premium brand in the country, 

 

The automaker said with the decision, the company is selectively entering segments where it can best leverage its global technology and supply chain strengths. Deliveries for the Tiguan R-Line are scheduled to begin on April 23.

 

It plans to launch the Golf GTI, a premium hatchback, in India next month. 

 

The brand's India strategy remains focused on selective participation in segments where it can use its global resources. “You have to monetize your competitive advantages. The segments we choose will align with that,” Ashish Gupta, brand director at Volkswagen India, said.

 

Tiguan R-Line’s launch is part of a broader strategy to strengthen its presence in the premium midsize SUV segment. The company is targeting a 3 per cent market share in the overall passenger vehicle segment over the next three to five years, supported by product launches, including potential electric vehicles.

 

The Tiguan R-Line is being imported as a fully built unit under the GSR 870 rule, which caps Volkswagen's import volume at 2,500 units annually for the entire group. This rule allows vehicle manufacturers to import a limited number of vehicles under specific categories without the need for full homologation in India, provided they meet certain international standards.

 

Gupta said: “The premium entry-luxury SUV segment in India stands at around 3,500 to 4,000 units a month. That’s where we’re positioning the new-generation Tiguan R-Line. The vehicle brings strong road presence and is equipped with a comprehensive suite of advanced technologies.”

 

In FY25, the Skoda Auto Volkswagen group held a market share of 2.03 per cent, selling 84,222 units, according to Federation of Automobile Dealers Association (FADA). Volkswagen India is estimated to have a less than 1 per cent share of the PV market. 

 

Commenting on electric vehicles, Gupta said all manufacturers are preparing EV strategies but the pace of adoption in India will depend on policy clarity and geopolitical conditions. “Nobody can say they don’t have an EV plan. But the pace will depend on how things pan out over the next year,” he stated.

 

Addressing concerns about import tariffs and global trade tensions, he noted that such issues affect business viability. However, he added that they could influence discussions around free trade agreements.