Volkswagen India to merge its subsidiaries under its INDIA 2.0 plan

The Volkswagen Group will merge its three Indian subsidiaries: Volkswagen India Private Ltd (VWIPL), Volkswagen Group Sales India Private Ltd (NSC) and ŠKODA AUTO India Private Ltd (SAIPL). Also, the Boards of the three companies in India have considered and approved the merger. Hence, it is now subject to the necessary regulatory and statutory approvals. Lastly, the restructuring of the Volkswagen Group companies in India is an important milestone in the ŠKODA-led INDIA 2.0 project.

The proposed merger of the three companies will ensure developing the Indian market. The VW Group brands: Volkswagen, ŠKODA, Audi, Porsche and Lamborghini will maintain their dealer networks and customer initiatives. Meanwhile, Gurpratap Boparai, managing director, VW India Private Ltd and SKODA AUTO India Private ltd.will lead the brands.

What does the merger and the INDIA 2.0 plan mean for India?

Speaking about the merger Boparai said, “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 about Rs 8,000 crore in the ‘INDIA 2.0’ project. Therefore, with the Technology Center that Skoda opened in January 2019 in Pune, they started the development of products based on the localised sub-compact MQB-A0-IN platform. These products will be tailored to the needs of customers in the Indian subcontinent. In the second phase of the project, Volkswagen Group will be examining the possibility of exporting vehicles built in India.

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