Tata Motors joins hands with Volkswagen Group and Škoda to explore joint development projects

Tata Motors, Volkswagen Group and Škoda have signed a Memorandum of Understanding (MoU) to bring together the expertise of both the car manufacturers for joint development of products. The trio have named the strategic partnership as ‘TOGETHER – Strategy 2025’. While Škoda will lead the project for Volkswagen Group brands, the partnership will work towards the development of vehicle concepts in the economy segment.

For Tata, the aim will be to get ‘FutuReady’ in synergy with the German manufacturers, while Volkswagen will look forward to expand its current portfolio in the fast-growing Indian market.

Announcing  this  strategic  alliance  opportunity,  Guenter  Butschek,  CEO  and  Managing Director,  Tata  Motors,  said,  “We  are  delighted  to  announce  our  potential  cooperation  with Volkswagen Group and Skoda. We strongly believe that both the companies, by working together, can  leverage  from  each  other’s  strengths  to  create  synergies  and  develop  smart  innovative solutions for the Indian and overseas market. This is in alignment with Tata Motors’ efforts to make itself ‘FutuReady’ by embracing new technologies, fostering higher platform efficiency and offering solutions that connect with the aspirations of our customers.”

“Our aim with the envisaged strategic partnership with Tata Motors is to lay the foundations in the Group and the brands that will enable us to offer customer-oriented mobility solutions in the emerging, fast-growing automobile markets, as elsewhere. By offering the appropriate products we intend to achieve sustainable and profitable growth in very different parts of the world. That is why we are systematically pursuing our regional growth strategy”, Matthias Müller, CEO of Volkswagen AG, commented.

The terms and conditions and the details of the MoU have not been shared yet. However, they are expected to be out in a couple of months. The companies will initiate the joint development work once the foundation is laid. Tata Motors has said that it will soon plan to launch the products in Indian market in the start of 2019.