Skoda And Volkswagen Merge To Become Skoda Auto Volkswagen India Private Limited

• The new entity takes over sales, production and service ops for both brands as well as Audi, Porsche and Lamborghini in India
• Gurupratap Boparai takes over as the Managing Director of the new entity.
• The new entity will be based out of Pune, with production facilities in Pune and Aurangabad.
• It will also have regional offices in Mumbai, New Delhi, and other locations across the country.
• The company will be showcasing its India 2.0 model portfolio at the 2020 Auto Expo in Delhi-NCR.

It looks to be a season of mergers in India with carmakers joining hands in response to the current state of affairs in the automotive industry. Volkswagen Group India has also joined the party with a consolidated merger of its three car companies. The three companies - Volkswagen India Private Limited (VWIPL), Volkswagen Group Sales India Private Limited (NSC) and Skoda Auto India Private Limited (SAIPL) - have merged to form Skoda Auto Volkswagen India Private Limited. The first model developed in this merger will involve the launch of a mid-size SUV which will be showcased at the 2020 Auto Expo in Delhi.

The Managing Director of Skoda Auto India, Gurpratap Boparai, has been appointed as the MD of the new entity. The new company takes over sales, service and production operations for both brands as well as for Audi, Porsche and Lamborghini India. The company’s headquarters will be situated in Pune, Maharashtra with two production facilities in Pune and Aurangabad. It will also have regional offices in Mumbai, New Delhi, and other locations across the country.

Volkswagen Group also claimed that this merger is another major step in achieving its ‘India 2.0’ goals in which vehicles will be developed based on a localised version of the MQB-A0 platform to tailor to the demands of the local market. Cars based on the MQB-A0-IN platform will have higher ground clearance and a longer wheelbase to cater to the needs of Indian car buyers. We expect the upcoming mid-size SUV to feature a Skoda badge by the end of 2020, followed by VW’s version in 2021. The company will be showcasing its ‘India 2.0’ portfolio at the 2020 Auto Expo that is set to be held in Greater Noida early next year.

While Skoda and VW are yet to reveal any details regarding its future powertrain options, we know that both companies are currently in the process of phasing out their 2.0-litre TDI diesel engines ahead of the 2020 BS6 emission norms. However, with petrol cars set to take precedence over diesel ones, we expect both carmakers to introduce the group’s 1.5-litre TSI EVO unit in the country soon.