WOLFSBURG (dpa-AFX) - German automaker Volkswagen AG (VWAGY.PK) is in
concrete talks to partner on production of cars in India, Reuters reported
citing Chief Financial Officer Arno Antlitz.

According to him, the Indian market has clear potential, though its difficult to
make money there due to demand for less expensive, entry-level cars with lower
profit margins.

'I think we shouldn't underestimate the potential in India in terms of a market
... and in terms of regulatory uncertainty between the U.S. and China,' he said.

The company currently operates two factories in India, which accounted for about
1 percent of its global deliveries last year, with 101,553 vehicle deliveries.

Earlier, Skoda, a Volkswagen brand, announced plans to design and manufacture an
all-new compact sports utility vehicle for the Indian market in the first half
of 2025.

Volkswagen in February signed a supply deal with Indian automaker Mahindra on
the use of key electric components of the German company's open platform for
electric vehicles.

As per the report, Volkswagen's brands aim for a 5 percent share of the Indian
car market by 2030.



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