This company plans to sell its stake in Indian business after investing over Rs 166879500000 due to...

Despite investing thousands of crores, some companies failed to thrive their businesses in the Indian market. They eventually shut down their business in the country or sold its stake. Now, another company is planning to sell its stake in the Indian business due to low business. It is German auto giant Volkswagen which has invested USD 2 billion (Rs 166879500000 crore) in the country. The automaker is in talks to sell stake in its India business to a local partner. 

Volkswagen has failed to establish its hold in the market with its expensive European cars. According to a top global executive, the company is developing new affordable cars to increase its low market share, TOI reported. However, it is not clear when the group will close the local partner talks.

The group has also demanded that the tax rates on hybrid vehicles in the country should be reduced. It argues that the government cannot force people to buy electric vehicles at a time when the market is taking time to change from petrol-diesel engines to green cars. In September 2021, another automaker Ford Motor Company had announced plans to exit India. But later decided to give it a rethink. Besides, Volkswagen is headquartered in Pune. It was launched in India with the iconic Passat in 2007.

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