VW Combines Operations in India

Volkswagen AG has integrated its three business operations in India into a single entity called Volkswagen Group India.

The move combines Skoda Auto India, VW India and VW Group Sales. The merger is part of the €1 billion ($1.2 billion) “India 2.0” restructuring initiative VW unveiled last July.

Led by the group’s Skoda brand, the three-year plan aims to launch an array of India-specific cars and SUVs beginning in 2020. The new models are being developed in large part by a new €250 million ($282 million) tech center that opened in Chakan in January.

The new vehicles, starting with the small SUV/crossover Karoq, will ride on VW’s new ultra-low-cost MQB “AO” subcompact platform. All will be designed to meet the more stringent emission and safety rules India will introduce next year.

VW operates two assembly plants in India, in Aurangabad (Skoda) and Chakan (VW). Last year, India’s demand for VW brand vehicles plunged 22% to 37,000. Skoda sales slipped 4% to 16,700 units.