Skoda Auto Volkswagen India posts record turnover of US$ 2.2 billion in FY23, profits rise over 48 percent

Incremental volumes from India 2.0 cars and growth in premium brands helped Europe’s largest automaker to post healthy operational performance.

By Ketan Thakkar and Shahkar Abidi calendar 27 Sep 2023 Views icon18915 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Skoda Auto Volkswagen India posts record turnover of US$ 2.2 billion in FY23, profits rise over 48 percent

Led by a strong volume offtake on account of the India 2.0 project, Skoda Auto Volkswagen India Private Limited, the lead entity for European auto major Volkswagen Group has posted a total turnover of over US$ 2.2 billion or Rs 18,500 crore in the country in FY23, rising by a third over the previous financial year.

The higher operating leverage and increased exports meant that Europe’s largest automotive group in India posted a 48 percent rise in profit after tax for FY23 at Rs 309 crore. 

Reviewing the FY23 earnings, the director's note stated that the Board continues to “work strenuously” to further strengthen the financial position of the company and has embarked upon various initiatives to improve sales, control costs and improve efficiency in all our operations.

As the mainstream product portfolio under India 2.0 hits the maturity cycle, the Skoda Auto Volkswagen board is likely to meet within a month to discuss the next phase of investments in India.

The discussion on the expansion of product portfolio for both ICE and EVs is on the agenda, for not only mainstream brands Skoda and VW, but even localising and manufacturing of EVs for Audi in the country is also part of the agenda, said sources.   

The Group that operates all of Volkswagen Group’s brands witnessed growth across brands.

Skoda Auto posted its highest-ever volumes in the country, posting a growth of 55 percent during the year. Led by the strong safety ratings for its SUVs Kushaq and Slavia sedan, the company continues to build traction in the marketplace. It ended the year with 245 touchpoints.

Volkswagen brand too posted a volume growth of 29% in the country during FY23 – led by its fresh portfolio of Taigun, Virtus and Tiguan.

Volkswagen's network footprint stood at 158 sales, and 125 service touchpoints in 117 cities in FY23.

“With several initiatives and action models planned in 2023, the Volkswagen brand will be accelerating further towards making it the most loved brand in India,” claimed the director’s report.  

Premium brands galloping
Its key pillar in the premium and luxury car maker Audi has bounced back well in FY23, posting a 63 percent rise in sales led by its Q range of SUVs.

“We launched Audi A8 L, Q3 and Q3 Sportback in the last financial year, and with the launch of Q3, we have the complete ‘Q Range’ available for Indian customers and this will surely assist us in achieving double-digit retail growth and higher market share in FY23-24,” added the director's note sourced from Tofler.  

Continuing its quest to reach out to more aspirational Indian car buyers, the company also inaugurated 6 Audi Approved Plus showrooms along with the renovation of existing showrooms and workshops.

“We will continue our focus on profitable and sustainable growth in the financial year 2023-24 too backed by strong network, product portfolio, after-sales and customer lifecycle management initiatives,” said the note on the Ingolstadt based luxury car brand. 

Porsche India too enjoyed its best ever sales performance in 2022 with the SUV segment seeing substantial growth in sales, highlighted by our top-selling model, the Porsche Cayenne.

During the last calendar year, the company appointed three new Porsche Centre partners in Bengaluru, Chennai and Kolkata. The company also introduced the Porsche Approved programme offering 12 months of cover on pre-approved cars.

The Italian sports car brand Lamborghini celebrates its 60th anniversary and as the new journey begins, the brand is entering a “new era towards sustainable future” with the launch of our first hybrid – the new V12, Revuelto.

The Revuelto was launched globally in March 2023, and is expected to be launched in India in the later part of the year.

Wage Agreements Concluded
During the year, the company was able to conclude a wage agreement with its workers at the Aurangabad factory – with the signing of Pune being concluded in May of 2023.

Re-homologation with reduced CO2 values
Re-homologation was undertaken for all 4 models of cars produced under the India 2.0 project during the year under review. This initiative ensured a reduction in the gap of CO2 values by 0.85 gm/km.

Readiness for alternative fuel (E20)
All India 2.0 Models are material compatible since Calendar week 07/2023.

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