Volkswagen Merges Three Subsidiaries in India

Volkswagen’s subsidiary in India, Volkswagen India announced that the company has merged its three passenger car subsidiaries — Volkswagen India, Volkswagen Group Sales India and Skoda Auto India — into a new entity named ‘Skoda Auto Volkswagen India’. The merger has been announced after it has received the needed regulatory and statutory approvals.

Skoda Auto Volkswagen India will be helmed by its new Managing Director, Gurpratap Boparai, and will have its headquarters in Pune. The company will have two production facilities, one each in Pune and Aurangabad. It will also have several regional offices spread across the country, including in major metro cities like Mumbai and New Delhi.

Commenting on the step, Skoda Auto CEO Bernhard Maier said that the operational launch of Skoda Auto Volkswagen India Pvt Ltd marks a significant advance in the company’s India 2.0 project. The merger is seen as a precondition for the three divisions to work together on all levels and to achieve Volkswagen’s long-term goal of gaining significant market shares for Volkswagen and Skoda by 2025. The company next plans to take a series of quick measures to proceed with its plans for growth. Volkswagen plans to present a specific outlook for its INDIA 2.0 model portfolio at the Auto Expo in Delhi.

Commenting on helming the new company, Boparai said “With this merger, we plan to combine the technology and management expertise of our team in India and realize our true potential in a challenging, competitive environment. We want to further strengthen our presence in India, ensure the professional development of our employees and safeguard sustainable profitability for our dealers,”.

The new merged entity will have a wide array of brands including Skoda Auto, Volkswagen, Audi, Porsche and Lamborghini. The brands will however continue to retain their distinctive identities and dealer network. They would also implement their own customer experience initiatives.