Volkswagen has officially entered the Sri Lankan passenger vehicle market through a partnership between Skoda Auto Volkswagen India Private Limited (SAVWIPL) and Continental Cars and Commercials, marking the brand's expansion in South Asia beyond India.

As part of its market-entry strategy, Volkswagen has introduced two India-manufactured models in Sri Lanka: the Volkswagen Taigun SUV and the Virtus sedan. Both vehicles are produced at SAVWIPL's Chakan manufacturing facility near Pune and exported under the Group's "Make-in-India, for India and the World" strategy.

The market launch is supported by the opening of a new 3S facility in Sri Jayewardenepura Kotte, Colombo. Developed in collaboration with local partner Continental Cars and Commercials, the showroom spans 18,713 square feet across nearly one acre of land and includes more than 20 service bays for sales, service and spare-parts operations.

Piyush Arora, Managing Director and Chief Executive Officer of Skoda Auto Volkswagen India, stated that Sri Lanka represents a market with demand for engineering and mobility products. He added that the company intends to utilise its localisation, engineering and manufacturing capabilities in India to support its long-term regional growth plans.

Jan Bures, Executive Director for Sales, Marketing and Digital at SAVWIPL, stated that the Taigun and Virtus were selected to address demand in Sri Lanka's passenger vehicle segment. He added that the company's focus would remain on establishing a retail and after-sales network to support its operations in the market.

SAVWIPL stated that the launch in Sri Lanka comes as the country's automotive market shows signs of stabilisation and recovery, with growing customer interest in passenger vehicles. The company also stated that the move forms part of its broader strategy to strengthen India's role as a manufacturing and export hub for the Volkswagen Group.

SAVWIPL currently oversees the Indian operations of six Volkswagen Group brands: Volkswagen, Skoda, Audi, Bentley, Lamborghini and Porsche. The company operates manufacturing facilities in Chakan, Pune, and Chhatrapati Sambhajinagar.

The company stated that it exports vehicles to more than 40 countries. Its India-produced models include the Volkswagen Taigun and Virtus, as well as the Skoda Kylaq, Kushaq and Slavia.