German automotive major Volkswagen Group said it plans to merge its three Indian subsidiaries — Volkswagen India Private Ltd., Volkswagen Group Sales India Private Ltd. and Skoda Auto India Private Ltd. to bring about synergy in operations and make the organisation more agile.
The merger has been considered and approved by the boards of the three companies in India and is now subject to necessary regulatory and statutory approvals, the company said in a statement.
“The restructuring of the Volkswagen Group companies in India is an important milestone in the Skoda-led ‘India 2.0’ project of the Volkswagen Group,” the company said.
The proposed merger is aimed at making more efficient use of the existing synergies in developing India which is an important growth market.
The group’s brands such as Volkswagen, Skoda, Audi, Porsche and Lamborghini would maintain their individual identities, dealer network and customer experience initiatives. But all these brands would work under the leadership of Gurpratap Boparai with a common strategy for the Indian market.
“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 companiesto unlock the Volkswagen Group’s true potential in India’s competitive automotive market,” said Gurpratap Boparai, MD, Volkswagen India Pvt. Ltd. and Skoda Auto India Private Ltd.
“The integration will lead to coordinated and faster decision making and increased efficiency using existing synergies,” he said.
In July 2018, the Volkswagen Group confirmed investments of ₹8,000 crore (€1 billion) in the ‘India 2.0’ project with an aim to corner a market share of 5% in a few years.
In January 2019, the company opened its technology centre in Pune, laying the foundation for the development of products based on the localised sub-compact MQB-A0-IN platform tailored to the needs of customers in the Indian subcontinent.
In the second phase of the project, Volkswagen Group would examine the possibility of exporting vehicles built in India, the company said.