Volkswagen Group looks to merge passenger car entities in India

3rd Apr 2019 12:26 pm

Indian arms of VW, Skoda, Audi, Porsche and Lamborghini will work under common leadership of Gurpratap Boaparai, if merger gets necessary approvals.

The Volkswagen Group has announced plans to merge all its passenger car entities in India. The proposed merger has been approved by the Boards of the three companies involved, namely Volkswagen India Private Ltd, Volkswagen Group Sales India Private Ltd and Skoda Auto India Private Ltd. However, the move is subject to regulatory and statutory approvals. The merger will bring Volkswagen, Skoda, Audi, Porsche and Lamborghini under the common leadership of Gurpratap Boparai, who is leading the Volkswagen Group’s ‘India 2.0 Project’. The carmakers will work to a common strategy in our market though the Volkswagen Group has underlined the brands will maintain their individual identities and dealer networks.

Commenting on the proposed merger, Gurpratap Boparai, MD Volkswagen India Private Ltd and Skoda Auto India Private Ltd said, “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.”    

As reported, Skoda will lead product development for the VW Group in India under the 1 billion euro India 2.0 Project. Earlier this year, Skoda opened up its new Technology Centre in Pune that will be at the heart of development for India. The focus will be on made-for-India products on an ‘Indianised’ version of the VW Group’s MQB platform (MQB-A0-IN). The first of the products, a Creta-rivaling SUV from Skoda will go on sale in 2020, and will be followed by VW’s version of the SUV and a pair of sedans. Further down the road, the VW Group will also look at exports from India.

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