VW and Tata Ready to Work Together

Volkswagen is looking to break into the world’s second most populous nation with a partnership with Tata Motors. The two corporations reportedly signed a memorandum of understanding today to share technology and platforms.

The reported memorandum of understanding comes after months of talks and means that the two will exchange technology, components, and platforms.

Tata Motors is India’s largest automaker and owns Jaguar Land Rover. The company is restructuring its business in India to go from six platforms down to just two in an attempt to boost production efficiencies, something VW knows all about.

“We confirm that we are in talks with VW for a potential alliance but an announcement will be made at an appropriate time,” a spokesman for Tata told Reuters.

Following its TDI scandal, VW is looking for new revenue streams and the world’s second most populous country is a good place to start. Unfortunately, despite the enormous population, surprisingly few Indians buy cars.

Still, projections forecast that sales of light vehicles in India are set to double by 2025 to 7.1 million. With an opportunity to have its brand recognized early in the process, VW is looking for local partners to help it serve the market as well as possible. The brand tried something similar in China, the market which now dominates sales for both the VW brand and Audi.

[source: Automotive News]

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