As part of a broader restructuring in the country, Volkswagen Group is offering early retirement to members of its India workforce. That means about 2,300 blue-collar workers have been offered the early-retirement scheme. As per a Reuters report that quoted unnamed sources, the move is aimed at “rationalising the manpower and aligning it with current needs”.
The automaker is reportedly looking at dealing with all the hurdles in the way of growth in the country, which happens to be the third-largest car market.
The Volkswagen Group various brands in the country, including its Volkswagen, Skoda, Audi, Porsche, Lamborghini and Bentley. However, it reportedly has merely two per cent of the car market share in the country even though it has been present here for at least 20 years now. Its two factories in India are operating way below their production capacities. Both the plants in Maharashtra manufacture the Skoda Kushaq SUV, Volkswagen Virtus, as well as the Audi Q3 and Q5 for sale in the country and for export.
Meanwhile, the brand’s presence in China has weakened and it is no longer present in Russia.
In September 2025 itself Volkswagen Group had revealed its plans to reshape its Indian business as it has been struggling with shrinking market share, intensifying competition, and rising regulatory challenges. The overhaul is being led by Skoda Auto, the brand managing the Group’s India operations, with the aim of improving efficiency and preparing for future industry shifts.
