Volkswagen To Merge Into Single Skoda led Entity

The Volkswagen Group India said that they have received all regulatory and statutory approvals to merge its 3 passenger car subsidiaries; Volkswagen India Private Limited (VWIPL), Volkswagen Group Sales India Private Limited (NSC) and Škoda Auto India Private Limited (SAIPL) in India into a single entity which will indeed be referred to as Skoda Auto Volkswagen India (SAIPL).

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• The merged entity shall include Volkswagen India, Volkswagen Group Sales India and Skoda Auto India, which is led by Gurpratap Boparai, who will assume the role of the Managing Director after the merge.
• The company will be headquartered in Pune and will have two production facilities in Pune and Aurangabad and have its regional offices in Mumbai, New Delhi and various other locations pan-India.
• The merger will bring the VW Group companies under one ambit consisting of brands including Skoda, Volkswagen, Audi, Porsche and Lamborghini. These brands will continue to operate independently.
• This merger is being considered to create more efficiency at all levels and to achieve the group’s long-term goal; That is to gain significant shares for both Volkswagen and Skoda by 2025. As per Skoda Auto CEO Bernhard Maier said in a statement that the operational launch of Skoda Auto Volkswagen India Pvt Ltd will mark an important milestone in the India 2.0 Project.
• Also commenting on the merger that the group is now planning to combine both technology and management expertise for the Indian team and to realise the true potential in a much challenging and competitive environment.
• In July 2018, the VW group announced to invest around €1 billion as part of the India 2.0 project. In January itself the company has opened a new technology centre to develop vehicles based on the localised MQB-A0-IN sub-compact platform which is tailored to the requirements of Indian consumers
• The company is also planning on its fresh model strategy and introduce Mid-sized or in other terms subcompact SUVs which will be sold from both Skoda and Volkswagen sales outlets.