The Volkswagen Group has announced that it intends to merge its three Indian subsidiaries - Volkswagen India Private Ltd (VWIPL), Volkswagen Group Sales India Private Ltd (NSC) and Skoda Auto India Private Ltd (SAIPL). The German automaker says that the merger has been considered and approved by the Boards of the three companies in India. However, the merger is now subject to the necessary regulatory and statutory approvals. According to the Volkswagen Group, the restructuring of their companies in India is an important milestone in the Skoda-led, 'India 2.0' project. It also believes that this merger will allow for greater efficiency.
The Volkswagen Group, which owns brands like Volkswagen, Skoda, Audi, Porsche and Lamborghini, will maintain their individual identities, dealer network and customer experience initiatives. However, the brands will work under the leadership of Gurpratap Boparai with a common strategy for the Indian market.
Gurpratap Boparai, Managing Director, Volkswagen India Private Ltd and Skoda Auto India Private Ltd commented, “India is an important and an attractive growth market for the Volkswagen Group. With the proposed merger, we intend to combine the technical and managerial expertise of the three companies to unlock the Volkswagen Group’s true potential in India’s competitive automotive market. The integration will lead to coordinated and faster decision making and increased efficiency using existing synergies.”
In July 2018, the Volkswagen Group confirmed investments of Rs 8,000 crore in the ‘India 2.0’ project. In January 2019, Volkswagen opened its Technology Center in Pune, which laid the foundation for the development of products based on the localised sub-compact MQB-A0-IN platform tailored to the needs of customers in the Indian subcontinent.