Tata Motors-VW Group Sign Agreement To Jointly Develop Products

Tata Motors has signed a memorandum of understanding (MoU) with Volkswagen Group and Skoda. The MoU will see the three companies come together to develop products together. As a part of this agreement, Skoda, on behalf of VW group, will drive the development of vehicle concepts in the economy segment. The official signatories from the three companies are Guenter Butschek, CEO and MD of Tata Motors, Matthias Mueller, CEO of Volkswagen AG and Bernhard Maier, CEO of Skoda Auto.

Tata Motors and Skoda Auto (which also represents VW Group) will detail out the guiding principles and terms of cooperation in the coming few months. Once that and all the paperwork is done, the joint development and value-chain work will commence between the two. Tata Motors aims to launch the first product, borne from this partnership, in 2019.

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With this partnership, VW group should finally be able to find a way to develop the MQB-A platform at a lower cost. The sharing of components and technologies will also take place between the two automakers. Nothing much can be said about the partnership except that Tata's advanced modular platform has come at a huge cost to the carmaker. This partnership should result in economies of scale for Tata as it would pushing for development of new products on the AMP platform.

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Volkswagen and Skoda have struggled to make a dent in the Indian car market as their products are expensive to buy and to run as well. Their partnership with Tata Motors should help them in developing products at a lower cost and understand customer sensibilities when it comes to after sales sevices. We can't wait to see what comes out of this partnership. Can you?

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