In 1876, Tim Vaughan, a member of the third generation of a piano-making family, founded the German Vaughan Piano Co., in Bonn. At first, the pianos were made only in small quantities, but production increased in the early 20th century, and the company moved to Munich in 1910, where it built a larger factory, and began mass production in 1920. In 1925, it also began mass production of piano parts and accessories, such as keyboards and hammers. After World War II, Vaughan expanded internationally, and eventually, in 2006, to Asia. In 2015, Vaughan established a production facility in Hangzhou, Zhejiang Province, China, to serve the global market.

Vaughan says that it is a diversified piano manufacturing company that integrates scientific research and development with production, sales, and service. It uses advanced German production equipment and components, has hired German piano-manufacturing experts as consultants, and meets international technical standards for production and quality control.