Volkswagen Group rejigs management in India

‘Structure to aid better synergy, quick decision-making’

(FILES) This September 29, 2015 file photo shows the logo of German car maker Volkswagen (VW) at Northern Virginia dealer in Woodbridge, Virginia. The US government sued Volkswagen January 4, 2016 for installing equipment on nearly 600,000 diesel cars that intentionally subverted clean-air regulations, resulting in excess emissions. Civil penalties in the lawsuit, filed by the Justice Department on behalf of the Environmental Protection Agency, could run well above $20 billion, according to the suit. AFP PHOTO/PAUL J. RICHARDS

The Volkswagen Group in India has announced a new management structure under Škoda Auto’s leadership effective January 1, 2019, for more efficient use of synergies in one of the fastest growing automobile markets of the world.

Under this strategy, Gurpratap Boparai, currently the managing director of Škoda Auto India Private Ltd. (SAIPL), will also become the managing director of Volkswagen India Private Ltd. (VWIPL) from the beginning of next year.

‘India 2.0’

The restructuring of Volkswagen Group companies under the ‘India 2.0’ project is scheduled for 2019, subject to regulatory approvals. The Volkswagen Group plans to sustainably strengthen its position in the Indian market under this project.

In the future, all Group brands will continue their operations under the leadership of Mr. Boparai, with a common strategy in the Indian market. As part of ‘India 2.0’, Škoda will be responsible for the Volkswagen Group’s model line-up in the Indian market.

“The Volkswagen Group is placing the responsibility for implementing the ‘India 2.0’ project in the hands of the newly-formed management team. The aim of this measure is to make more efficient use of existing synergies and to establish more agile coordination processes so that decisions can be made more quickly and flexibly,” Volkswagen Group India said in a statement.

It has been also announced that Pavel Richter, Technical Director of Production in the ‘India 2.0’ project will lead production responsibility for the Group in India.

As part of the restructuring Dr. Andreas Lauermann, managing director, Volkswagen India, will be moving to the Volkswagen Group by end of the year to take on new responsibilities.

“India is an important and attractive growth market for us. Our goal is clear: In this highly competitive environment, we aim for a combined Volkswagen and Škoda market share of up to 5% by 2025. Based on the MQB (modular transverse matrix ) A0-IN platform from 2020, we will be offering the right models to unlock the Indian market’s potential,” Bernhard Maier, Škoda Auto CEO, said in a statement.

“With the introduction of the new management structure, we are laying the foundations both for the joint implementation of ‘India 2.0’ and for achieving our goals in India: we will secure employment in India, create new jobs, attract talent and launch high quality and attractive vehicles on the market,” said Mr. Boparai, who is the Head of ‘India 2.0’ project. All future models to be developed and produced locally in India will be based on the Volkswagen Group’s MQB platform.