Skoda Auto Volkswagen Eyes Indian Collaboration Amid Customs Inquiry

Skoda Auto Volkswagen India is actively exploring potential collaborations with local partners to expand its reach in the Indian market. This move is separate from the ongoing customs duty fraud investigation. The company's strategic intent includes discussions with potential collaborators, aiming to enhance growth opportunities in India.

Skoda Auto Volkswagen India has confirmed that it is actively in discussions with a potential local partner in India, despite recent speculation that it might have stopped seeking a collaborator following a customs duty investigation. The company emphasized that its strategic initiatives and the customs inquiry are unrelated.

The firm, steering Volkswagen's Indian operations, is facing a customs notice over alleged duty fraud amounting to Rs 11,000 crore related to importing cars as completely knocked down units. Nonetheless, it continues to explore business opportunities to harness the growth potential in the dynamic Indian automotive market.

Contrary to various media reports linking Skoda Auto Volkswagen with Indian companies like Mahindra and JSW, no official confirmations have been made. However, earlier this year, Volkswagen Group and Mahindra & Mahindra Ltd announced a supply agreement to collaborate on electric vehicle components.

(With inputs from agencies.)