Volkswagen, Skoda, Audi, Porsche, Lamborghini To Merge In India — Czechs To Lead The Charge

German automotive conglomerate Volkswagen Group is set to merge all of its brands currently present in India into one entity. The German automotive giant currently has five marques operating in India in the form of Volkswagen, Skoda, Audi, Porsche and Lamborghini.

While the merger will see the 5 brands merge into one entity in India, the Volkswagen Group claims that the carmakers will retain their individual identities when operating in the sub-continent. Skoda India will head the Volkswagen Group's operations in India as part of the conglomerate's India 2.0 strategy.

The merger will see the Volkswagen Group's three major subsidiaries in India: Volkswagen India Private Ltd, Volkswagen Group Sales India Private Ltd (which focuses on the sales of VW, Skoda, Audi, Porsche and Lamborghini in the country) and ŠKODA AUTO India Private Ltd (SAIPL) merge into one unit. The move to merge has been approved by the boards of all three subsidiaries of the Volkswagen group and is subject to necessary regulatory and statutory approvals required.

All the VW group brands in India will work under Gurpratap Boparai, the Managing Director of Volkswagen India Private Ltd and SKODA AUTO India Private Ltd on a common strategy for the Indian automotive market. Speaking about the merger Mr Boparai said, "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 coordinated and faster decision making and increased efficiency using existing synergies."

Skoda will lead the Volkswagen Group's push into the nation as per the India 2.0 project for which the automotive conglomerate announced an investment of Rs 8,000 crore (1 billion Euros) in July last year. Earlier this year in January, the VW group opened its Technology centre in Pune, where it will develop its new array of vehicles for India based on the sub-compact MQB-A0-IN platform. The platform, claims VW has been tailored to the needs of Indian customers. Volkswagen claims that in the second phase of the India 2.0 project, it will look into exporting cars from the sub-continent to international markets.

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Article Published On: Thursday, April 4, 2019, 16:01 [IST]
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