FACTSHEET 2020

Area: 2,198,480 m² / 572 acres (Pune), 3000 m²/75 acres (Aurangabad) January 2020

Production capacity: 180,000 vehicles(Pune), 60,000 (Aurangabad)

Models: Volkswagen Polo, Vento and ŠKODA Rapid (Pune)/ Skoda Superb, Kodiaq, Octavia, , Audi A4, A6, Q5 and Q7 (Aurangabad)

Management: Mr. Gurpratap Boparai, Managing Director

Workforce: About 4373 (03/2020)

Manufacturing Pune Plant The SKODA AUTO Volkswagen plant in Pune is one of the most modern plants in the worldwide. The facility covers the entire production process, from press shop through body shop, paint shop to final assembly. The plant is spread over an area of about 572 acres. The plant at Pune started production in 2009 and currently produces the Volkswagen Polo, the Volkswagen Vento and the ŠKODA Rapid. In 2019, the plant produced a total of 98,300 vehicles of which 35,517 were for the domestic market and rest for exports. The production processes meet the most stringent production, quality and environmental standards. Since end of 2014, the engine unit of the Pune plant (complete with engine analysis centre) has also produced the 1.5 TDI and 2.0 TDI engines designed especially for India.

Aurangabad Plant The Aurangabad facility started assembling SKODA cars from 2001. Spread over an areas of 75 acres, the facility currently houses the assembly of the SKODA Octavia, SKODA Superb, SKODA Kodiaq, Volkswagen Tiguan, and Audi A6 are assembled. In a two-shift system, the facility can assemble up to 60,000 cars. The Aurangabad facility also been assembling the 2.0 TSI EA888 engine from 2020. EA888 is used in the SKODA Octavia, SKODA Superb and Audi A6.

Corporate Communications, SKODA AUTO Volkswagen India Private Ltd [email protected]/ [email protected] Page 1 Management Mr. Gurpratap Boparai is the Managing Director of SKODA AUTO Volkswagen India Private Limited since January 1, 2019. Board of Directors: Martin Malkhe (CFO SAVW/Executive Director- Finance and IT), Jan Frydrch (Executive Director - HR), Steffen Heim (Executive Director - Corporate Purchase), Mojmir Hajek (Technical Director) and Sanjay Khare ( Executive Director - Environment and Safety)

ŠKODA AUTO Volkswagen India ŠKODA AUTO Volkswagen India represents the passenger car subsidiaries of the Volkswagen Group in India. The company has been formed following the merger of ŠKODA AUTO India Private Limited (SAIPL), Volkswagen India Private Limited (VWIPL), and Volkswagen Group Sales India Private Limited (NSC). Headquartered in Pune, ŠKODA AUTO Volkswagen is responsible for the business operations of five automotive brands in India: ŠKODA AUTO, Volkswagen, Audi, Porsche, and Lamborghini. The Volkswagen Group has been present in India for the last 19 years; its India journey began with the entry of the ŠKODA Aurangabad facility in 2001. Audi and Volkswagen brands entered India in 2007, while Porsche and Lamborghini followed in 2012. Each brand has its own character and operates independently within the Indian market. Between the five brands, the company offers more than 25 models to its customers via 225 plus dealership facilities and operates two production units: in Chakan, Pune and Shendra, Aurangabad. ŠKODA AUTO Volkswagen India also boasts of a state-of-the-art Technology Centre that has been set up as part of the ‘INDIA 2.0’ project in 2019 at its Pune facility. The Technology Centre has laid the foundations for the development of products based on the MQB-A0-IN platform, which will be engineered and localized for the domestic market. This Technology Centre houses 250 engineers who are developing vehicles tailored to meet the needs of customers in the Indian subcontinent. This essential component of the ‘INDIA 2.0’ project sees Indian engineers taking responsibility for project management, electronics, infotainment, body design, interior, chassis, etc. Between the two production facilities and the sales and marketing teams of the five passenger car brands, the company employs over 4,800 people across different locations in India.

Investment With an initial amount of €580 million, the Pune plant is the largest investment project of a German company in India to date. In 2012 and 2013, a further €100 million were invested in process and product improvement measures. In 2014 and 2015, €30 million were invested in the new engine production unit (with engine analysis centre) at the Pune plant as well as €85 million in the production of the new Volkswagen Ameo, which started production in Pune in mid-2016. Under the ‘INDIA 2.0’ project a fresh investment of €1 billion has been committed which will aid in the setting up of new infrastructure, and investments in product development.

‘INDIA 2.0’ Project With the ‘INDIA 2.0’ project, the ŠKODA AUTO Volkswagen India has set in motion the next big move in one of the world’s most dynamic automotive markets. In mid-2018, the Volkswagen Group announced that ŠKODA AUTO will lead the ambitious project that will see the development of a sustainable model campaign for the ŠKODA and Volkswagen brands in the Indian volume segments. The Group also announced an investment of €1 billion for the implementation of this programme. Using the versatile MQB platform, all-new models will be designed and produced locally under this project. The introduction of the first models under the ‘INDIA 2.0’ project would be based on the sub- compact MQB-AO-IN platform – in the form of mid-sized SUV from both SKODA and Volkswagen brands – and these were unveiled at the Auto Expo held in Delhi in February 2020.

Corporate Communications, SKODA AUTO Volkswagen India Private Ltd page 2 The MQB platform offers fundamental advantages like standardizing of components, dimensions and production processes, lowered costs, and reduced production times. It also offers increased flexibility whilst developing new models. The platform also meets the latest safety and emission norms in India, while achieving up to 95 percent localization.

Environment Environmental responsibility is a part of ŠKODA AUTO Volkswagen India’s corporate strategy. As a part of the global strategy, the company is constantly striving to reduce or balance the negative impacts of the manufacturing processes on the environment. With ‘Go to Zero’ strategy the company intends to become a carbon neutral company by 2030 across our Manufacturing operations. By 2025, the plan is to reduce total life cycle Greenhouse Gas Emissions of passenger cars and light duty vehicles by 30% compared to 2015. Under the ‘Green Future’ philosophy, ŠKODA AUTO Volkswagen India has taken some strategic steps towards sustainable energy. The company has installed 8.5 MWp solar panels on the plant rooftop under a ‘Develop Own and Operate’ model with an option to more than double the capacity by the time the plant expansion works (part of the INDIA 2.0) are concluded saving close to 9,000 tons of CO2 emissions per annum. The achievements of environmental-friendly initiatives so far have been as below: - 28% reduction in Specific Energy Consumption compared to 2011 ( kWh/Car) - 100% energy efficient lighting in the Pune plant by utilising natural / LED lights - Zero liquid discharge facility - 95% of solid waste is recycled - Measures underway to be a Zero Waste to Landfill operation. - Goal to make the India operation Carbon neutral by 2030

Corporate social responsibility At ŠKODA AUTO Volkswagen India, CSR is part of the company’s vision. As a group, the company is involved in numerous social projects locally, in the state of Maharashtra and at the national level. The main emphasis through these projects is on Water Conservation, Health, Education & Road Safety. ŠKODA AUTO Volkswagen India supports a variety of social projects under these categories. Some examples include building water reservoirs for drought-affected villages, blood donor campaigns, the establishment of a permanent ambulance service for the villages surrounding Pune and a community college financed by the company that offers vocational training opportunities to disadvantaged young people.

Corporate Communications, SKODA AUTO Volkswagen India Private Ltd page 3 Technology Centre As the first step under the India 2.0 banner, ŠKODA AUTO Volkswagen India kick-started dedicated Technology Centre at the beginning of 2019. With an investment close to € 250 million in research and development for the ‘INDIA 2.0’ project, the engineers at our R&D centre are responsible for project management, electronics, infotainment, body design, interior, chassis and complete vehicle. Currently the Technology Center comprised of 250 R&D engineers and around 200 support engineers engaged in the Design and Development of the India 2.0 product portfolio.

Quality Centre Inaugurated at Pune Plant in CW10, Quality Centre is an important milestone in the India 2.0 project as it brings all analysis and testing activities under one roof for all future projects. Equipped with state-of- the-art tools and equipment like special water test cabin with tilting platform, acoustics shaker, dark room setup for headlamp aiming and wheel axle geometry setup, Quality Center will align and work with suppliers from Europe, as well as with local suppliers and service providers to achieve cost- effective and innovative solutions.

Digi Lab The fourth global Digilab unit was inaugurated by Skoda in Pune in January 2020. Digilab Pune will continue to work closely with Digilab , China, and Israel. Along with this a dedicated software development centre has been established in Gurugam and Pune office to support IT requirements of Skoda Auto globally and develop digital solutions. Just like the other members of Skoda Auto’s growing global innovation network, Skoda Auto DigiLab India will also develop mobility solutions and services – always striving to offer real added value for the customer. Skoda Auto DigiLab India may also support Skoda Auto’s core business globally with new technologies and digital solutions.

Group Tools Library The ŠKODA AUTO Volkswagen India ‘Tools Library’ represents a major milestone in the implementation of the ‘INDIA 2.0’ project. The ŠKODA AUTO Volkswagen India has invested INR 17 million ₹ in setting up the infrastructure of the tools library and stocking it with the right tools and equipment’s. Inaugurated in May 2019 the ‘Tools Library’ supports more than 220 ŠKODA AUTO Volkswagen India dealer partners across the nation. Dealers are now able to loan specialized tools and equipment’s whenever necessitated. The initiative enables the brands ŠKODA AUTO, Volkswagen, and Audi to serve its customers with quality job work in a time bound manner.

Volkswagen Group Academy: Volkswagen India set up Volkswagen Academy in 2013. The Academy provides technical and non- technical training solutions to ŠKODA AUTO Volkswagen India and its channel partners. In addition, the goal was to meet the training demand of various brands under ŠKODA AUTO Volkswagen India for qualified work force and to create ready pool of industry professionals. The Academy also runs a unique Technical Apprentice Program (VG-TAP). This is to create quality talent pool for the automobile industry and also supplement recruitment at dealership level. The program involves Mechanical, Electrical, Robotics, Hardware and similar aspects in car engineering as a part of the curriculum.

Several training are conducted by the group on daily basis to upgrade the skill set of our employees at all locations and help them perform their duties.

Corporate Communications, SKODA AUTO Volkswagen India Private Ltd page 4