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Volkswagen is set to benefit from a new EU India trade agreement that will sharply reduce tariffs on European car imports into India.
The company plans to expand access to India’s car market while halting its planned Audi factory in the US, citing tariff and trade policy uncertainty.
These moves signal a shift in Volkswagen’s global production focus, with India becoming more attractive and the US currently less so.
Volkswagen, listed as XTRA:VOW3, is reacting to shifting trade terms by leaning into an EU India deal that could lower import barriers to one of the world’s largest car markets. The stock trades at €102.3, with a 5.1% gain over the past week and an 11.5% return over the past year, while longer periods such as 3 and 5 years show relatively flat performance. For investors, the contrast between shorter term gains and muted multi year moves frames how meaningful new market access could be for sentiment.
The decision to pause a new US Audi plant while welcoming tariff cuts in India points to where Volkswagen currently sees clearer conditions for committing capital. As the EU India agreement is implemented, investors may watch how the company balances importing vehicles into India with any future local production choices, and how that compares with its footprint and product plans in the US.
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XTRA:VOW3 Earnings & Revenue Growth as at Jan 2026
XTRA:VOW3 Earnings & Revenue Growth as at Jan 2026
How Volkswagen stacks up against its biggest competitors
Quick Assessment
✅ Price vs Analyst Target: At €102.3 versus a €115.8 consensus target, the price sits about 12% below where analysts are centered.
✅ Simply Wall St Valuation: Simply Wall St currently flags Volkswagen as trading roughly 61.6% below its estimated fair value.
❌ Recent Momentum: The 30 day return of about 1.4% decline shows recent sentiment has been soft despite the India tariff news.
Check out Simply Wall St’s in depth valuation analysis for Volkswagen.
Key Considerations
📊 The EU India deal could make Volkswagen’s current valuation more interesting if lower tariffs help it make better use of its global production network.
📊 Keep an eye on how much volume Volkswagen directs into India, any commentary on pricing versus tariffs, and whether the 7.6x P/E converges toward the industry’s 8.2x.
⚠️ With profit margins at 2.1% versus an industry average of 4.6% and debt not well covered by operating cash flow, balance sheet pressure remains an important watchpoint.