India 2.0: Volkswagen Group Initiates Merger Of Subsidiaries
Volkswagen Group India currently has three subsidiaries – Volkswagen India Pvt. Ltd. (VWIPL), Volkswagen Group Sales India Pvt. Ltd. (NSC) and Skoda Auto India Pvt. Ltd. (SAIPL). In a bid to make more efficient use of existing synergies, the automotive group has initiated the process of merging all three of its Indian subsidiaries. The move has been considered and approved by the Boards of the three companies. The merger will go through once regulatory and statutory approvals come through.
The German firm has confirmed that even after the merger goes through, all its brands in India – Volkswagen, Skoda, Audi, Porsche and Lamborghini – will maintain their individual identities, dealer network and customer experience initiatives. However, all brands will have a common head honcho – Gurpratap Boparai. He started his stint with the Volkswagen Group India by becoming the MD of SAIPL and, from January 1, 2019, he also took the same title for VWIPL.
The decision to merge all three subsidiaries is part of Volkswagen Group’s India 2.0 project. In July last year, it announced that an investment of 1 billion euros has been kept aside for turning its fortunes around in India. The said project will be led by Skoda, which will introduce a compact SUV based on the made-for-India MQB-A0-IN platform in 2020. Most likely, it will be the tinkered and bigger version of the Euro-spec Skoda Kamiq which broke cover at this year’s Geneva International Motor Show.
The same platform and recipe will also be used by Volkswagen to introduce its own version of a compact SUV. For the uninitiated, it will be the bigger version of the European T-Cross. Alongside, Volkswagen Group India will also be strengthening its roots by increasing the number of touchpoints and employing more skilled personnel from India. In January 2019, it inaugurated a new tech centre near Pune. The said facility will employ 250 engineers and will enable Skoda to achieve 95 per cent localisation of components. In phase two of India 2.0 project, Volkswagen Group will examine the feasibility of exporting India-made cars.
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