Volkswagen, Skoda Announce Merger In India; Here Is What It Means For The Vehicle Owners

Volkswagen Group India is planning to realise its ¡°true potential¡± in the country. For this, the group has now announced the merger of three of its subsidiaries - Volkswagen India Private Limited (VWIPL), Volkswagen Group Sales India Private Limited (NSC) and Skoda Auto India Private Limited (SAIPL). The three will now be collaboratively called Skoda Auto Volkswagen India Private Limited (SAVWIPL).

The merger basically means that the sub-car brands under the Volkswagen banner, including Skoda, Volkswagen, Audi, Porsche and Lamborghini will now be operated by the new-formed company. Leadership of the conglomerate has been handed to Gurpratap Boparai who has been named as the managing director of the new firm.

Providing a glimpse of why the merger took place in the first place, Boparai said, ¡°With this merger, we plan to combine the technology and management expertise of our team in India and realise our true potential in a challenging, competitive environment.¡±

The sharing of resources between the entities will also lead to a shared vision and strategy for the new-formed corporation in the Indian market. The new entity will have regional offices in Mumbai, Delhi and other cities across the country, while its headquarters will be in Pune, Maharashtra.

(Representative Image: Reuters)

Volkswagen Skoda merger purpose

VW Group has been working on its India 2.0 project, which is set to see a series of new vehicle offerings from the company and its sub-firms. These vehicles will be based on the Group¡¯s MQB-A0 India specific platform.

With the merger and the pooled resources, the group can now dedicate more of these to the upcoming vehicles. The first in line is reported to be a midsize SUVs from Skoda and VW, set to be unveiled at next year¡¯s Auto Expo in New Delhi.

What it means for Skoda and Volkswagen owners?

The merger might have cleared the agenda for the future, yet it brings its own confusion for the prevalent customers of these brands. Questions arise such as which of the entities will be responsible for the servicing and maintenance of their vehicles.

The Volkswagen Group has a simple answer to these. It has confirmed that the each of the brands will retain their individual identities, in addition to their specific dealer network as well as the customer experience.