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Old 3rd April 2019, 13:28   #1
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Default Volkswagen Group plans to merge all passenger car entities in India

The Volkswagen Group plans to merge in India all companies that manufacture and sell passenger cars.

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Volkswagen Group announced its intention to merge three Indian companies - Volkswagen India Private Ltd (VWIPL), Volkswagen Group Sales India Private Ltd (NSC) and SKODA AUTO India Private Ltd (SAIPL). The merger has already been approved by the board of directors of all three companies. The merger is subject to approval by the competent authorities in India.

The restructuring of Volkswagen Group companies in India is a significant milestone in the Volkswagen Group's “INDIA 2.0” project, led by ŠKODA AUTO.
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Volkswagen Group brands operating in India, ie. Volkswagen, ŠKODA, Audi, Porsche and Lamborghini retain their own identity, sales network and customer programs.
All these brands will operate under the leadership of Gurpratapa Boparaie as part of a joint Indian market strategy.

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The merger of these three entities is subject to approval by the competent authorities in India.
Source: ŠKODA

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Old 3rd April 2019, 16:03   #2
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Default Re: Volkswagen Group plans to merge all passenger car entities in India

Volkswagen Group plans to merge all passenger car entities in India - Post moved to a new thread.
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Old 3rd April 2019, 16:07   #3
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Default Re: Volkswagen Group plans to merge all passenger car entities in India

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... led by ŠKODA AUTO.
That is the worst possible news.
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Old 3rd April 2019, 16:56   #4
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Default Re: Volkswagen Group plans to merge all passenger car entities in India

I think Skoda was more independent before VW landed on our shores. They only weighed Skoda down, for the sake of positioning VW. I reckon now it's going to repeat at a larger scale. Unless the Indian entity is able to make decisions freely, this only seems like a executive scale salary saving measure.


For the kind of monthly numbers they do, and the life cycle of their vehicles, the least they should do is merge Skoda and VW dealerships and service centers.
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Old 3rd April 2019, 17:33   #5
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Default Re: Volkswagen Group plans to merge all passenger car entities in India

If they have a clear plan and execution in place, this strategy could work well IMO.

The biggest downside of 3 firms within the same group competing with each other is cannibalisation. Now that all are aligned as one unit, this will be put to rest to some extent by brand categorisation.
Much like how FMCG works- HUL owns and successful grows brands like dove,lifebouy and lux within one category of soaps by having different focus and TGs.
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Old 3rd April 2019, 18:21   #6
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Default Re: Volkswagen Group plans to merge all passenger car entities in India

Is this akin to putting all eggs in one basket? I feel Mr. Boparai has a mammoth task ahead getting WAG back into the profitable stables, and I suggest he begins with a lesson to the dealerships in humility and arrogance-free attitude.
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Old 3rd April 2019, 19:17   #7
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Default Re: Volkswagen Group plans to merge all passenger car entities in India

High time VW Group did this.
Globally, they are boasting about sales dominance across so many markets but in India, its a pittance for them.

I see that with this consolidation, they will immediately want to leverage benefits for integrated back-end ops, purchase, SCM decisions etc.

And for the customer, it could potentially (rather hopefully, is more like it) mean faster model launches and more consistency in the service experiences even though they say individual brand entities will not be diluted.

They have a very good opportunity to make the most of India 2.0 programme launched last year, and I seriously want them to make good of it.
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Old 3rd April 2019, 20:32   #8
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Default Re: Volkswagen Group plans to merge all passenger car entities in India

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more consistency in the service experiences
That, of course, is exactly what worries me.

Better they got rid of either Skoda or VW, keeping Audi for the luxury market. Perhaps that is what they actually are doing.
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Old 3rd April 2019, 21:03   #9
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Default Re: Volkswagen Group plans to merge all passenger car entities in India

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Originally Posted by 2cents View Post
For the kind of monthly numbers they do, and the life cycle of their vehicles, the least they should do is merge Skoda and VW dealerships and service centers.
You absolutely nailed it. Skoda A$$ are very difficult to deal with and unreasonable too. If this merger is genuinely aimed at the customer satisfaction, the VAG will succeed because they have good products. However, if it is a mere exercise in cooking the books it will sound the death knell.
I wish I could take over VAG in India. Even with my lack of experience in the automotive industry, I don't think the company will do any worse.

C'mon VAG, this is a good move. You are the top auto company in the world doing business in one of the largest growing auto markets. Spend some money, ramp up big time and put in your heart and soul. Stop having pompous dealers and service centres. Luxury car dealers have more involvement than yours.
Get rid of this situation where multiple service centres in a city are owned by the same people. Monopoly breeds arrogance and indifference.
Whew ! This is the rant of a sad Skoda owner.
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Old 3rd April 2019, 23:33   #10
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Default Re: Volkswagen Group plans to merge all passenger car entities in India

Does this mean Skoda/VW owners can service their cars at the other company's A.S.S.? If yes, I'd argue that's a good thing in small towns where you're no longer at the mercy of the sole dealer anymore.
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Old 4th April 2019, 06:47   #11
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Originally Posted by Thad E Ginathom View Post
That, of course, is exactly what worries me.

Better they got rid of either Skoda or VW, keeping Audi for the luxury market. Perhaps that is what they actually are doing.

Both the brands enjoy tremendous recall and I think its just their limited product portfolio and bad service experiences that has caused some damage. Yet, both brands have been able to register certain brand values with the Indian market, like build quality and safety.
And its not easy to build a brand in India. I would think that they can co exist, provided they do not keep churning out just clones of the same cars.
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Old 4th April 2019, 09:30   #12
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Default Re: Volkswagen Group plans to merge all passenger car entities in India

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Originally Posted by McLaren Rulez View Post
Does this mean Skoda/VW owners can service their cars at the other company's A.S.S.? If yes, I'd argue that's a good thing in small towns where you're no longer at the mercy of the sole dealer anymore.

This could possibly be the best thing that could happen! And if they provide Audi like experience for Skoda and VW customers, that will automatically translate to more Audi sales or brand retention. It will be a total win-win situation.
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Old 4th April 2019, 09:41   #13
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Default Re: Volkswagen Group plans to merge all passenger car entities in India

Recently, Volkswagen has launched the special edition of the three models Ameo, Polo and Vento, which are the main contributors to the sales figure for this German firm in the country. These special editions would be introduced in “Black and White" name and come with no extra cost, fortunately.
There are several new exterior updates, including new exterior colour scheme and a set features such as new body graphics, a new sporty rear spoiler, new 16-inch Portago alloy wheels, and black and white leather seats.
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Old 4th April 2019, 11:58   #14
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Default Re: Volkswagen Group plans to merge all passenger car entities in India

The way things are going, I guess if they badge the Polo as a Skoda and add 1.2TSI to the Rapid, they can close the whole VW operations in India.
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Old 4th April 2019, 12:14   #15
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Quote:
Originally Posted by McLaren Rulez View Post
Does this mean Skoda/VW owners can service their cars at the other company's A.S.S.? If yes, I'd argue that's a good thing in small towns where you're no longer at the mercy of the sole dealer anymore.
I don't think that will happen and neither should it. It clearly says they will retain their identity, service networks and customer programs as is. There won't be any data exchange at this level and hence i believe, to the layman, this merger would pretty much go unnoticed.
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