Volkswagen Group has made it official that they are merging three companies to a single company which will be called Skoda Auto Volkswagen India Private Limited (SAVIPL). This decision came after the various board meetings among the three companies and under the new “India 2.0” project led by Volkswagen.
These three companies include Volkswagen India Private Ltd (VWIPL), Volkswagen Group Sales India Private Ltd (NSC) and SKODA AUTO India Private Ltd (SAIPL). The new company SAVIPL will be lead by Skoda Auto. The merger is set to complete all its formalities by the 21st of this month. This comes as a part of “India 2.0” in which Volkswagen has invested 8,000 crores.
Also due to the slowdown in the Automobile industry, this merger will help all the three companies to better deal with the slowdown and manage resources efficiently. Volkswagen also believes that this merger will combine technical and managerial expertise of all three companies.
All the dealers, suppliers and vendors will now come under this new brand without any changes to the old terms and conditions. They also plan to increase the number of dealers to spread out the reach of the brand. Talking about the Volkswagen Group, its a huge group with various subsidiaries including, Buggati, Ducati, Skoda, Lamborghini, Bentley, Audi, Porsche, Scania and lots more.
Skoda India has been in the country long begore Volkswagen came to India and has helped Volkswagen to get a strong foothold in the market. So now finally Volkswagen has given the lead of the new company to Skoda India which should result in better sales and competent new products. All brands under SAVIPL will continue to operate as individual identities with separate dealers and service stations. As with this Volkswagen kickstarted “India 2.0” project, a lot more things will come specifically to the Indian market under this project to improve market hold.