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

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.