Volkswagen Group to merge all its Indian subsidiaries; Skoda to lead charge

-The proposed merger has been approved by the Boards of all three Indian subsidiaries.

-The merger is subject to regulatory and statutory approvals.

-Skoda will lead the charge for Volkswagen Group with the ‘India 2.0’ project.

The Volkswagen Group has announced its intent to merge its three Indian subsidiaries - Volkswagen India Private Ltd (VWIPL), SKODA AUTO India Private Ltd (SAIPL) and Volkswagen Group Sales India Private Ltd (NSC). The merger has been approved by the Boards of all the three companies and is subject to the necessary regulatory and statutory approvals. The restructuring of the Indian subsidiaries is an important milestone in the ‘INDIA 2.0’ project that is led by Skoda.

This merger will enable the group companies to efficiently use its existing synergies to develop India-spec products and increase its declining market share. All the existing Volkswagen Group companies like Volkswagen, Skoda, Lamborghini, Audi, and Porsche will continue with their individual identities, dealership network and customer experience initiatives. However, the companies will work under the leadership of Gurpratap Boparai, the current managing director of Skoda India, with a common strategy for the domestic market.

Under the Skoda-led ‘India 2.0’ project, Volkswagen Group will invest Rs 8,000 crore in India for the development of India-specific products based on the localised MQB-A0-IN platform. The vehicle based on this platform will be a compact SUV from Skoda, likely the India-spec Kamiq. This will be followed by the launch of the India-spec Volkswagen T-Cross. In the next phase, Volkswagen Group will consider exporting India-made vehicles to the global markets.