Volkswagen and Tata aim to improve car sales in India with partnership

Volkswagen has signed a partnership with Tata designed to help both manufacturers increase car sales in India and emerging markets.

By signing the memorandum of understanding (MoU), the pair agree to jointly develop mechanical components, as well as potentially creating concept vehicles.

Skoda Auto is taking the project lead, though owner Volkswagen Group says that it hopes to expand other parts of its group into ‘fast-growing emerging markets’ should the opportunity present itself.

Matthias Müller, CEO of Volkswagen AG, said: “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-orientated 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.”

Günter Butschek, CEO and managing director of Tata Motors Ltd., commented: “We are delighted to announce our potential co-operation 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.”