Skoda Auto Volkswagen India (SAVWIPL) management has announced that the voluntary retirement scheme (VRS) being implemented at the Pune and Chhatrapati Sambhaji Nagar (formerly Aurangabad) plants is entirely voluntary and has been developed in consultation with the company’s labour union. The company employs approximately 5,000 people across both facilities, with the majority at the Pune plant. Management does not anticipate a significant participation in this round of VRS, expecting the number of employees opting for it to be in the double digits.
Union-Driven Move to Enhance Operational Efficiency
The union initiated a request for a VRS for a select group of workers. Participation in the VRS is open only to union members. The company stated that this scheme was developed based on continuous discussions and requests from the union over the past two and a half years for employees considering retirement or seeking other opportunities. “Through these and many other initiatives, we are enhancing operational efficiency and reaffirming our long-term commitment to the Indian market,” the company stated.
India Plants Evolve into Key Growth and Export Hubs
The Group has recently celebrated 25 years of operations in India and, last month, surpassed the two million mark in local vehicle production. The company has the capacity to produce 3,20,000 units across the two plants, with the Pune plant capacity at 2,50,000 units.
Over the past three years, the company has manufactured 500,000 units based on the India-developed MBQ-A0-IN platform, which includes models such as the Skoda Kushaq, Slavia, Kylaq, Volkswagen Taigun, and Virtus. This year, they have retailed 94,021 units, reflecting a 28.8% year-on-year growth, with the retail market share increasing to 2.34% in November 2025, compared to 1.8% a year earlier. In 2025, the Volkswagen Group in India experienced a volume increase of about 38% year-on-year, driven by the Kylaq in the sub-4m category. The Kylaq is expected to play a significant role in achieving the brand’s annual sales target of 1,00,000 vehicles in India by 2026. Additionally, operations in India have become a strategic hub for the broader ASEAN region, the Middle East, Australia, and New Zealand.