Volkswagen Conceives SAVWIPL For India 2.0
No need to scratch your heads! It stands for Skoda Auto Volkswagen India Private Limited.
Over the years, India’s brutal automotive market has left some names diminished and some demolished. For instance, a couple of years ago, General Motors’ subsidiary Chevrolet shut shop in India as it failed to capture any meaningful share in fifteen years. Very recently, Ford announced that from mid-2020, most of its operations would fall under a joint venture with Mahindra. Sure, combining energies in a challenging environment makes a good business case. However, one cannot deny the fact that Ford has been in India since 1995, and it still could not reach the anticipated levels of acceptance in the market.
In short, it is tough for a foreign brand to establish itself in India. Only notable exceptions are Suzuki and Hyundai, both of which built on their early bird advantages. Volkswagen and Skoda are two others which have struggled over the years. However, neither is not giving up on India yet. For the India 2.0 project, which will receive an investment of one billion euros (~ Rs 7,800 crore) over a few years, the Volkswagen Group decided to join three of its passenger car subsidiaries into one. In other words, the merger of Volkswagen India Private Limited (VWIPL), Volkswagen Group Sales India Private Limited (NSC) and Skoda Auto India Private Limited (SAIPL), is called Skoda Auto Volkswagen India Private Limited (SAVWIPL).
The idea behind this merger is simple: to gain a significant market share for Volkswagen Group in India by 2025. Also, the reason why Skoda’s name appears before VW’s is that it will be the Czech brand which will lead the proceedings for the automotive group under India 2.0. Gurpratap Boparai, who headed Skoda Auto and Volkswagen India separately, will take the managing director’s role for the newly formed company. All the brands under the VW Group’s umbrella, such as Lamborghini, Audi, Porsche and Skoda, will retain their distinctive identities and dealer network.
The first product under India 2.0 project will be a Skoda-badged mid-size SUV, which will be underpinned by the MQB-A0-IN platform. At the 2020 Auto Expo, the prototype of that SUV will be present. The biennial event will open its gates in the first week of February. Once Skoda is done launching that SUV in India, Volkswagen will take the same recipe and launch its version of it. This sharing of stuff will carry on for future products as well.
Also read: Skoda India Brings Back Scout Nameplate