Volkswagen is set to announce major lease deals in India, with the company set to give its luxury brands a 10-year lease agreement in 2019, a person familiar with the matter said on Tuesday.
The deal is a significant one, given that it comes on the heels of the US-owned carmaker’s recent sale of its brand-name brands in the country.
The decision to extend the leases is expected to be a significant coup for Volkswagen as it tries to regain the lost ground it lost when it sold off brands like Audi and Porsche in the US and Europe in the last decade.
Volkswagen has long been an attractive destination for leasing deals in the Indian market, with its brands including Audi, Porsche and Mercedes-Benz all being sold to a consortium of Indian companies.
The lease deals for luxury brands will be a major step in Volkswagen’s efforts to regain market share in India after years of decline.