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Volkswagen Group, all you need to know about the automotive major and plans to list Porsche brand

German auto major Volkswagen Group is one of the world’s largest vehicle manufacturers and has brands across two-, four-wheeler, and commercial vehicle offerings. In addition, it also houses components, software, financial services, on-demand mobility and wholesale business brands.

Founded in 1937, the Wolfsburg-Germany headquartered company is amongst the most valued auto companies in the world. As per estimates the company directly employs more than 6 lakh people globally and had a revenue of $254.1 billion (Rs 20,52,874 crore), $646.4 billion (Rs 52,22,265 crore) in assets, and a profit of $9.5 billion (Rs 76,750 crore) in 2021.

The company currently houses 10 brands focusing on the overall mobility needs. It has divided the brand groups into ‘volume’, ‘premium’, and ‘sport’, which are working transparently and independently for the common success of Volkswagen Group by developing their own global position and strategic alignment.

Volkswagen Group is now gearing up for the listing of its premium luxury performance brand, Porsche estimated to be between $70 billion (Rs 5,65,530 crore) to $75 billion (Rs 6,05,925 crore) in valuation, which would make it the second largest in Germany’s history and third largest in Europe.

The listing is expected to generate $19 billion (Rs 1,53,501 crore), which will not help further raise the valuation of the Volkswagen Group, but also provide cash flows to pursue the group’s vision and ambition of electrification.

Interestingly, at an estimated 75 billion euros (Rs 5,94,975 crore) valuation Porsche as a whole is the star-studded crown for Volkswagen, which is estimated to be valued at 86 billion euros (Rs 6,82,238 crore). As per industry observers, often mass-market and luxury brands together do not unlock the full potential in terms of valuation for companies.

The forward thinking brand also was amongst the first super luxury brands to introduce a high-performance SUV the – Porsche Cayenne in 2002. An era where most competitors mocked the idea, but a trend that was later followed by all major competitors, thus proving the company’s forward thinking persona.

The other brands that Volkswagen holds in its portfolio include –

  • Volkswagen – the global mass market car brand.
  • Volkswagen Commercial Vehicles – the light commercial vehicle offering.
  • Skoda – the Czech car brand offering a premium mass-market product portfolio.
  • Seat – One of Spain’s most well-known car brands.
  • Cupra – the brand’s goal is to make emotional electric cars with great design and performance.

Cupra – the brand’s goal is to make emotional electric cars with great design and performance.

Cupra – the brand’s goal is to make emotional electric cars with great design and performance.

In the premium vehicle space, the company houses Audi and Lamborghini in the four-wheeler space and Ducati in the two-wheeler space.

Porsche, the crowned jewel in the portfolio is the sports brand both on the circuit as well as for retail customers.

The other business units for Volkswagen Group include –

Traton – one of the world’s leading commercial vehicle manufacturers with its Scania, MAN, Volkswagen Truck & Bus, Navistar, and RIO brands. The portfolio includes light commercial vehicles, trucks, and buses.

Cariad – an independent software company.

Volkswagen Group Components – the brand manufactures and supplies key parts to the Volkswagen Group companies.

Volkswagen Financial Services – It compromises a diverse product portfolio for dealer and customer financing, leasing, banking and insurance, fleet business and other mobility services.

MOIA – an on-demand ride pooling service to redefine mobility for people in urban areas.

Volkswagen Group in India

The German carmaker had entered the Indian market in 2001 with the introduction of the Skoda brand. Audi and Volkswagen made their debut in 2007, while the premium brands Lamborghini and Porsche were brought in 2012.

Despite being present in the country for more than a decade, the company has struggled to grab a piece of the highly competitive passenger vehicle market. At present, Volkswagen has a market share of less than 3 percent.

AS part of its plans to drive growth in India, the Group in 2019 merged – Volkswagen India, Volkswagen Group Sales India, and Skoda Auto India – to drive group synergies and growth. The initiative is being led by Skoda Auto India by developing the MQB A0 IN platform for the Skoda Kushaq, Volkswagen Taigun SUVs and Skoda Slavia and Volkswagen Virtus sedans.

It was in the past that the Volkswagen Group had been criticised globally on the back of the diesel-gate scandal.

It was also amongst the first companies in India in the post BS VI era to discontinue diesel products thus committing to its global plans to provide green vehicles.

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