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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
We were already aware that the Volkswagen Group will be merging its Indian subsidiaries, as the brand had 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 and Skoda Auto India Private Ltd (SAIPL), after the boards of the three companies have approved the merger and it has passed the necessary regulatory and statutory approvals.
The resultant entity, Skoda Auto Volkswagen India Private Limited (SAVWIPL) will be led by Gurpratap Boparai as its Managing Director, and will be headquartered in Pune, Maharashtra. It will operate two production facilities in Pune and Aurangabad, and have regional offices in Mumbai, New Delhi, and other locations across the country.
Speaking about the merger, Bernhard Maier, Skoda Auto CEO, said, “The operational launch of Skoda Auto Volkswagen India Private Limited marks an important milestone in the India 2.0 project. This merger creates one of the key prerequisites for working together more efficiently at all levels and achieving our long-term goal: to gain significant market shares for Volkswagen and Skoda by 2025. We will now proceed in a series of quick steps: As early as next year, we will be presenting a specific outlook for our India 2.0 model portfolio at the Auto Expo in Delhi.”
The 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 merged entity (Skoda Auto Volkswagen India Private Limited) without any break or changes in the terms and conditions in their current association.
Lastly, the merger will not reflect on any other VW Group brands such as Audi, Porsche and Lamborghini. They will maintain their unique identity, existing dealer networks and customer initiatives as before.