VW Group India eyes passenger car business merger this month

    Merger process said to be completed by September 21, 2019; new organisation proposed to be named Skoda Auto Volkswagen India Pvt Ltd.

    Published On Sep 09, 2019 02:10:00 PM

    12,744 Views

    VW Group India eyes passenger car business merger this month

    It was earlier this year that the Volkswagen Group India announced its intentions to merger its passenger car business – Volkswagen India Pvt Ltd, Volkswagen Group India Sales Pvt Ltd and Skoda Auto India Pvt Ltd – in the country. The Group is eyeing the completion of the merger process by September 21, 2019, subject to all requisite approvals, with the new organisation proposed to be named Skoda Auto Volkswagen India Pvt Ltd (SAVWIPL).

    As per a source, the National Company Law Tribunal has approved the merger, though a written approval is still awaited.

    With the planned merger, the Volkswagen Group aims "to combine the technical and managerial expertise of the three companies to unlock the Volkswagen Group's full potential in India".

    Under the 'India 2.0' strategy, the Volkswagen Group had decided to make its Czech Republic-based Skoda business unit head the fresh attempt to gain a fair share in the highly competitive Indian passenger vehicle market. While Volkswagen cars couldn't find strong favour among Indian customers, the Skoda brand has a good chance as at least some of its models fall in 'sweet spots' of the Indian car market, according to an industry veteran.

    Under the 1 billion euro (approximately Rs 8,000 crore) plan announced on July 2, 2018, the original strategy is to develop eight new offerings – four each for domestic and export markets. The four models include an SUV and a sedan under the Volkswagen brand and the same for Skoda. Sources say that these models will be based on Volkswagen's MQB platform and there will be badge engineering involved.

    The company may launch one model every six months, and the first of these models could be launched in March 2021. Volkswagen's India 2.0 plan also involves tapping the India base as a technical and an export hub. A set of four left-hand-drive models – two each for Skoda and Volkswagen – may be produced by 2022.

    Click here for Volkswagen models, prices, reviews, images, videos and more

    Click here for all Skoda models, prices, reviews, images, videos and more

    Copyright (c) Autocar Professional. All rights reserved.

    Comments

    ×
    img

    No comments yet. Be the first to comment.

    Ask Autocar Anything about Car and Bike Buying and Maintenance Advices
    Need an expert opinion on your car and bike related queries?
    Ask Now

    Search By Car Price

    Poll of the month

    Buying an electric car but renting its battery: is it a good idea?

    Yes, it lets me pay only as per my usage

     

    33.57%

    No, I prefer to buy the whole car

     

    56.55%

    No, I prefer to lease the whole car

     

    9.88%

    Total Votes : 1579
    Sign up for our newsletter

    Get all the latest updates from the automobile universe