Volkswagen is revising down its forecasts for China and India.

Speaking in the Frankfurter Allgemeine Zeitung newspaper today, president of VW’s India operation Jörg Müller, said that Volkswagen’s growth rate in China is slowing down sharply, and that it will miss its sales goals for India this year.

One of the reasons for not meeting targets in India is the fact that a planned financing agreement with Reliance Finance has not worked out. In addition the company has delayed entering the commercial vehicle market until next year.

Volkswagen is the most recent major vehicle manufacturer to invest in India. It is building a new plant in Pune, which should be opened by the end of March.

Müller’s counterpart in China, Winfried Vahland, told the newspaper that he is expecting the first quarter of next year to be difficult. However, he said that if further growth does not materialize the company is prepared for that.

Separately Toyota has told a Japanese news agency that it is revising down its sales forecast for this year. Instead of 20% growth for the year it is now forecasting 14.3% growth. It is now expecting to sell 600,000 cars, 100,000 cars fewer than originally forecast.