European auto manufacturers have regularly faced severe hardships in ramping up their sales; over the past few years the brands have resolved to produce India specific models for better suitability, but even after that the sales figures showcased meagre rises. A recent update from JATO dynamics has revealed that Renault, Skoda Volkswagen have all reported dwindling sales numbers in the recent past.
As per the data provided by JATO Dynamics , Renault has recorded the biggest sales dip in India to 37,900 units in 2024-25 from the 45,439 units that Renault was able to sell in 2023-24. Beyond that Renault was able to increase sales figures to around 78,926 units in 2022-23.
Skoda listed figures of around 44,866 units in 2024-25, slightly higher than that of 44,522 units in 2023-24. A problematic figure considering that in 2022-23 the brand was able to sell upto 52,269 units.
Volkswagen posted a sales figure of around 42,230 units in 2024-25, down from the 43,197 Volkswagen had ramped up in 2023-24. In 2022-23 Volkswagen clocked up sales of around 41,263 units.
As per a PTI report that elucidated insights from JATO Dynamics India President Ravi G Bhatia, the initial Focus these brands exerted towards sedans, led them to witness slow sales. The Concentrated effort towards sedans further limited them from their exposure to the fast progressing SUV segment.
The Report Further detailed that the brands were slower in refreshing their line up, the brand reach was further slow and sales from the tier 2 and tier 3 markets was further limited due to low penetration. The Indian tax structure, where the Sub 4 meter vehicles benefit from lower levies further added to the worries of these brands.
While European brands suffered the consequences of such tax impositions, Japanese and Korean brands diversified their portfolios to offer multiple sub 4 meter offerings.
Current Tax Structure for Vehicles
The Current tax policy levies 28% and 1% compensation Cess to all passengers ( Petrol,CNG and LPG ) up to 4 meters in Length and has a 1200CC engine. Passenger vehicles with diesel powertrain with 4 meter length and close to 1500cc engine are levied with 28% GST and 3% compensation cess.
Passenger vehicles that were over the length of 4 meters and engine capacity 1500CC attract 28% GST and 17% Cess. While those above 1500CC engine size attract 28% GST and 17% cess.
SUVs Above 4 meters in length above 1,500 cc engine and more than 170Mm ground clearance attract 28% GAST and 22% compensation Cess. While the European brands have failed at achieving high localization, their contemporary competitors such as Tata, Mahindra and Suzuki have been able to capture the market with their frequent launches, and early adoption of alternative fuel engines and launches that included CNG,HYBRID and BEV’s The European players have further lagged in launching new EV’s.
The report that detailed insights from Jato Dynamics India President Ravi G Bhatia further listed that the European brands might use the Indian market for R&D and for export purposes.
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