TL;DR
Volkswagen Group India is offering an early retirement scheme to 2,300 employees as part of a restructuring effort to rationalize manpower and strengthen operations amidst challenges like declining market share and an import tax dispute.
The Volkswagen Group in India has introduced a voluntary early retirement scheme for all 2,300 employees across its two manufacturing facilities. This initiative is part of a broader operational restructuring aimed at rationalizing manpower and aligning it with current needs, as both factories are operating below their installed production capacities.
Employees opting for the scheme will receive compensation based on their years of service or remaining years until retirement. This restructuring program, confirmed by Skoda Auto Volkswagen, which oversees the Group's India strategy, is intended to strengthen operations and reaffirm their long-term commitment to the Indian market despite recent challenges.
The restructuring comes at a time when the German automaker, which includes brands like Volkswagen, Skoda, Audi, Porsche, Lamborghini, and Bentley, holds approximately a 2% market share in India. The company is also navigating a significant challenge involving a USD 1.4 billion import tax demand from India, which Volkswagen has denied.
