Volkswagen and Skoda India merge: Skoda Auto takes charge of operations officially

Regulatory authorities have approved the merger of Volkswagen India and Skoda Auto India to form a new company which will be headed by the Skoda brand.

By: | Published: October 7, 2019 3:20 PM

Volkswagen India Pvt. Ltd., Volkswagen Group Sales India Pvt. Ltd. and Škoda Auto India Pvt. Ltd. have merged into one single company and will be known as Škoda Auto Volkswagen India Private Limited as one single entity. As a part of the Volkswagen Group’s ‘India 2.0’ strategy, the brand had earlier announced that they planned to merge their businesses and the operations will be spearheaded by the Skoda brand.

The company claims that it has secured the prerequisite regulatory and statutory approvals, the regulatory authorities have now approved the transformative merger of the companies, and the Gurpratap Boparai has been appointed as the Managing Director of the new company Škoda Auto Volkswagen India Pvt. Ltd.

The company will be headquartered in Pune, Maharashtra and will operate two production facilities in Pune and Aurangabad, and have regional offices in Mumbai, New Delhi, and other locations across the country using existing synergies.

Under the aegis of Škoda Auto Volkswagen India Pvt. Ltd., brands that will be included under the umbrella will be Skoda, Volkswagen, Audi, Porsche and Lamborghini and a statement from the company states that all of them will pursue a shared vision and strategy for the Indian subcontinent, while maintaining their own brand identity.

Bernhard Maier, ŠKODA AUTO CEO, explains: “The operational launch of ŠKODA AUTO Volkswagen India Private Limited marks an important milestone in the INDIA 2.0 project. This merger creates one of the key prerequisites for working together more efficiently at all levels and achieving our long-term goal: to gain significant market shares for Volkswagen and ŠKODA by 2025. We will now proceed in a series of quick steps: As early as next year, we will be presenting a specific outlook for our INDIA 2.0 model portfolio at the Auto Expo in Delhi.”

Gurpratap Boparai, Managing Director of ŠKODA AUTO Volkswagen India Pvt. Ltd., adds: “With this merger, we plan to combine the technology and management expertise of our team in India and realize our true potential in a challenging, competitive environment. We want to further strengthen our presence in India, ensure the professional development of our employees and safeguard sustainable profitability for our dealers.”

The company opened a new technology centre in Pune, which will develop market-specific vehicles based on the localised MQB-A0-IN subcompact platform. The first model is said to be the mid-size SUV which will be available as a Skoda and the Volkswagen with concepts to be showcased at the Auto Expo 2020. Following the mid-size SUV, the brand will be working on a premium hatchback which will be the new generation Polo for India from the Volkswagen brand.

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