European auto brands like Renault, Volkswagen (VW), and Skoda have failed to grow in India despite being present for over a decade. Their sales have declined continuously for the last three years. These brands are struggling due to pricing issues, fewer budget models, and stiff competition from Indian and Korean carmakers.
Key Reasons Behind Poor Performance
While these brands have strong reputations globally, their India strategies haven’t worked. From product choices to pricing, several missteps have pushed them behind in a market that rewards affordability, service, and segment-specific offerings.
- Wrong car segment focus
Most Indian buyers prefer small cars and compact SUVs. But European brands focus more on sedans or larger cars which don’t sell well here. - High pricing
Cars from Renault, VW, and Skoda often cost more because of high import duties and complex global platforms. - Low localization
These brands rely on imported parts or global designs. This increases cost and doesn’t suit Indian road or budget conditions. - Slow to adapt
Unlike Maruti, Hyundai, and Tata, European brands take more time to launch new or refreshed models in India. - Limited service network
Skoda and VW are expanding slowly. Skoda has 300 outlets now and aims for 350 by 2025, but it’s still behind major rivals. - EV plans are still on paper
Skoda has announced ₹14,000 crore investment in Maharashtra to build EVs, but those cars are expected only after 2027.
Official Brand Websites:
- Renault India: Press & Media section
- Škoda‑VW India: Corporate overview
- Volkswagen India official site
In Summary:
Renault, VW, and Skoda are struggling in India due to high prices, poor segment focus, and limited network reach. With EVs and a new compact SUV expected by 2025, they still have a chance — but the competition is tough, and time is running out.
