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Volkswagen confirms merger for Indian subsidiaries
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Volkswagen confirms merger for Indian subsidiaries

The consolidation of Volkswagen’s Indian operations comes as a result of the brand’s restructuring as part of the Skoda-led India 2.0 project       

By Sudipto Chaudhury

Published on :

We were already aware that the Volkswagen Group will be merging its Indian subsidiaries, as the brand has announced in April 2019. Volkswagen has now confirmed the merger of its three Indian subsidiaries: Volkswagen India Private Ltd (VWIPL), Volkswagen Group Sales India Private Ltd (NSC) and Skoda Auto India Private Ltd (SAIPL), after the boards of the three companies have approved the merger. Hence, it is now subject to the necessary regulatory and statutory approvals, that the merger will be finalised on September 21 and the resultant entity will be led by Gurpratap Boparai, MD, VW India Private Ltd and Skoda Auto India Private Ltd.

So what does the merger mean for Volkswagen’s future in India?

The proposed merger of the three companies will ensure the brand’s development in the Indian market especially in view of the prevailing overall slowdown in the auto industry. Additionally, it will also lead to more streamlined acquisition of talent, which might play a part in increasing the brand’s reach in the mass market. As part of the merger, all existing authorised dealership facilities, vendors and suppliers will be integrated with the proposed merged entity Skoda Auto Volkswagen India Private Limited without any break or changes in the terms and conditions in their current association. However there has been no clear word on whether other VW Group brands such as Audi, Porsche and Lamborghini, and they will most likely maintain their existing dealer networks and customer initiatives.