Volkswagen Group to merge three Indian subsidiaries, looks to benefit from synergies

Merger of Volkswagen India, Volkswagen Group Sales India and Skoda India aims to make more efficient use of the technical and managerial expertise and enhance existing synergies.

Autocar Pro News Desk By Autocar Pro News Desk calendar 03 Apr 2019 Views icon15434 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp

The Volkswagen Group has announced its intent to merge its three Indian subsidiaries: Volkswagen India, Volkswagen Group Sales India and Skoda India. The merger has been considered and approved by the Boards of the three companies in India and is now subject to the necessary regulatory and statutory approvals.

The restructuring of the Volkswagen Group companies in India is an important milestone in the Skoda-led ‘India 2.0’ project of the Volkswagen Group. The proposed merger of the three companies will make more efficient use of the existing synergies in developing India as a growth market. The Volkswagen Group brands – Volkswagen, Skoda, Audi, Porsche and Lamborghini – will maintain their individual identities, dealer network and customer experience initiatives. The brands will work under the leadership of Gurpratap Boparai with a common strategy for the Indian market.

Commenting on the merger decision, Gurpratap Boparai, managing director, Volkswagen India and Skoda Auto, “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 (1 billion euros) in the ‘India 2.0’ project. In January 2019 the Technology Center was opened in Pune, laying 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. In the second phase of the project, Volkswagen Group will be examining the possibility of exporting vehicles built in India.

RELATED ARTICLES
BharatBenz displays new high-performance construction and mining trucks at Bauma 2023

auther Autocar Pro News Desk calendar31 Jan 2023

The 3532CM and 2832CM mining tipper and 5532 Tip Trailer get a more powerful 320hp BS VI diesel powertrain, providing hi...

Hindustan Zinc deploys heavy-duty EV for underground mining operations

auther Autocar Pro News Desk calendar31 Jan 2023

Hindustan Zinc deploys Normet's SmartDrive EV heavy-duty EV for its underground mining operations. The Vedanta Group com...

Mahindra XUV400 gets over 10,000 bookings in four days

auther Autocar Pro News Desk calendar31 Jan 2023

Waiting period on the all-electric SUV stretches up to 7 months; M&M aims to deliver 20,000 units within the first year ...