Volkswagen Group (VW), the renowned German multinational automobile group, has reportedly announced that it would be merging the group’s three Indian subsidiaries, Skoda Auto India Pvt. Ltd. (SAIPL), Volkswagen Group Sales India Pvt. Ltd & Volkswagen India Pvt. Ltd. (VWIPL).
Reports cite, the proposed merger has already been approved by the board members of all three VW subsidiaries in India. The restructuring of the VW Group in India comes under its India 2.0 project, under which Skoda India would be leading the merged entity in terms of engineering & product development. The marketing & sales operations would remain the same.
According to a report by Business Standard, all brands of VW Group like Volkswagen, Audi, Lamborghini, Porsche and Skoda would still retain their individual identities, including their own customer service initiatives & dealer networks. The brands would be working under Gurpratap Boparai, the present Managing Director of SAIPL & VWIPL.
The proposed merger would reportedly help the three group firms to capitalize on currently existing synergies & also significantly expedite the decision-making process. While the brands would be retaining their individualities, they would be following a common growth plan for the Indian automobile market.
The Managing Director of Skoda Auto India & Volkswagen India, Gurpratap Boparai stated that India is a crucial & attractive growth market for Volkswagen. Through the proposed merger, the group intends to combine the managerial & technical expertise of all three VW entities to unlock the true potential of Volkswagen Group in the competitive Indian automotive market. Boparai further added that the merger would lead to quicker & more coordinated decision-making & significantly boost the group’s operating efficiencies.
According to reports, the proposed merger would now be subject to certain statutory & regulatory approvals.