Volkswagen Group has announced their intention to merge all their three Indian subsidiaries – Volkswagen India Private Ltd (VWIPL), Volkswagen Group Sales India Private Ltd (NSC) and Skoda AUTO India Private Ltd (SAIPL). This merger has been approved by the Board and is now subject to regulations and statutory approvals.
This restructuring of the Volkswagen Group in India marks a milestone in the Skoda-led ‘INDIA 2.0’ project of the Volkswagen Group. This merger will bring the entire Volkswagen Group brands under 1 leadership.
The brands include – Volkswagen, Skoda, Audi, Porsche and Lamborghini. The merger will not affect functioning of the brands. All five brands will retain their individual identities along with dealer networks. They will be under the leadership of Gurpratap Boparai, who is currently the Managing Director of Volkswagen India Private Ltd and SKODA AUTO India Private Ltd.
India, being an important market for the company, it will be under Boparai’s leadership that the company will be combining technical and managerial expertise of all three companies to steer ahead the Volkswagen Group’s potential in India. The merger will bring about better coordination and quicker decision making thereby enhancing efficiency.
Skoda will lead product development for the Volkswagen Group under the Rs 8,000 crore (EUR 1 billion) in the India 2.0 project announced in July 2018. In January 2019, the company also opened the new Technology Center in Pune for the development of the MQB-A0-IN platform which has been designed for new gen made in India cars from VW Group. The first such product will be an SUV from Skoda which is slated for launch from 2020; which will be followed by an SUV and two sedans from Volkswagen. Volkswagen is also targeting increase in export of cars from India. This is being planned for the next phase.
Earlier this month, the company also commenced road tests for its upcoming BS VI ready petrol engine in India. This engine will be a new 1.0 liter, 3 cylinder petrol engine which will be introduced in the Volkswagen India product lineup closer to the April 2020 deadline.