The Hindu Business Line

Volkswagen to merge three passenger vehicle units in India

Brands will work under the leadership of Gurpratap Boparai


German auto-maker Volkswagen Group on Wednesday said it will merge its three Indian passenger vehicle subsidiari­es in a bid to corner larger market share in the highly competitiv­e car market.

Volkswagen Group brands such as Volkswagen, Skoda, Audi, Porsche and Lamborghin­i will maintain their individual identities, dealer networks and customer experience initiative­s. However, the brands will work under the leadership of Gurpratap Boparai with a common strategy for the Indian market.

This restructur­ing of the Volkswagen Group companies is a part of the Skoda-led ‘INDIA 2.0’ project of the Volkswagen group. Under the project, the Volkswagen Group Gurpratap Boparai

had confirmed investment­s of ₹8,000 crore in India.

Three entities — Volkswagen India Private Ltd (VWIPL), Volkswagen Group Sales India Private Ltd (NSC) and Skoda Auto India Private Ltd (SAIPL) — will be merged as part of this plan.

“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 faster decision making and increased efficiency using existing synergies,” said Gurpratap Boparai, Managing Director, Volkswagen India Private Ltd and Skoda Auto India Private Ltd.

The proposed merger of the three companies will make more efficient use of the existing synergies in developing this important growth market, the company said in a statement. In January, the technology centre 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, the Volkswagen Group will be examining the possibilit­y of exporting vehicles built in India.

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