The Volkswagen Group entered India more than 2 decades ago and they currently have only 2% market share with their brands Volkswagen, Skoda, Lamborghini, Bentley, and Porsche. The group is looking at a broader restructuring in India while Klaus Zemmer, CEO of Skoda, has stated the need for growth in India as the brand has exited Russia and their China presence is also smaller.
The Volkswagen Group, running 2 factories in India (Chakan and Aurangabad), is offering early retirement to all of their 2300 workers because both the factories are running below their actual production capacities. They have introduced a scheme to rationalise their manpower and align it with their current needs.
The scheme offers employees 75 days of pay for each year served in the company or each year remaining until retirement – whichever is lower. Employees who sign up within 5-10 days of this announcement will get some additional payout as well.
The automaker wants to ensure it could continue paying competitive wages and the plants continue to operate. Skoda has been leading the Volkswagen Group’s India strategy since 2018 and they are currently seeking a local partner as they are looking to finalise the next stage of investment in the Indian market.
