Skoda VW India Announces VRS for Factory Workers

New Delhi, Dec 11 (PTI) Skoda Auto Volkswagen India Pvt Ltd on Thursday said it has introduced a voluntary retirement scheme for workers at its two manufacturing plants based on requests and discussions with the Union.

The company, which is driving the growth of German automotive major Volkswagen Group in India, said the scheme is entirely voluntary and the group is committed to the Indian market in the long term.

"Based on requests and constructive discussions with the Union over the past couple of years at both our manufacturing locations (Pune and CSN - Chhatrapati Sambhajinagar), SAVWIPL has introduced a Voluntary Retirement Scheme (VRS) to support employees who are considering retirement or exploring other career opportunities," Skoda Auto Volkswagen India Pvt Ltd (SAVWIPL) said in a statement.

It further said, "The scheme is entirely voluntary, underscoring our commitment to employee welfare and social responsibility. Through these and many other initiatives, we are strengthening operational efficiency and reaffirming our long-term commitment to the Indian market."

According to a source, initially, "around 100 factory workers were interested, but so far workers in only low double digits have come forward to avail of the offer".

SAVWIPL manages the Indian operations of six Volkswagen Group four-wheeler brands - Skoda, Volkswagen, Audi, Porsche, Lamborghini and British super luxury brand Bentley.

The company has around 2,000 workers across the two plants, from where it rolls out models, including SUVS Skoda Kushaq, Kylaq and VW Taigun; sedans Skoda Slavia and Volkswagen Virtus, besides Audi Q3 and Q5 for domestic and export markets.

"With a robust roadmap for the Indian market, we remain deeply committed to our valued customers, business partners, and the development of the local automobile ecosystem," SAVWIPL said.

Stating that 2025 has been a record year for the VW group in India, the company said, "volumes grew about 38 per cent year-on-year, propelled by the Kylaq in the sub-4m category. A series of new model introductions across our six brands has increased our market share, and ongoing initiatives are set to strengthen our position in this strategic market further."

Under its India 2.0 Project announced in 2018, VW Group had announced an investment of 1 billion euros between 2019 and 2021, with Skoda Auto leading the drive for growth.

In September, Skoda Auto CEO Klauss Zellmer said the company is gearing up to ride the 'growth train' in India, developing the country as a 'second pillar' to avoid over-reliance on Europe in future.

The company is preparing for a "big game" in the battery electric vehicles segment in the country by fully localising the 'CMP21' platform that has been engineered and developed in China, besides looking to bring another small EV.