Tata Motors-VW tie-up likely at Geneva show: report

The Geneva International Motor Show in March will not only be keenly watched for showcasing innovative cars with new technologies but also for international partnerships. This time it could be a partnership deal between Tata Motors and Volkswagen.

The Economic Times cited sources to say that it could be a technology tie-up or a joint venture, with vehicle architecture and technology at the centre of discussion. The contours of the deal are in the process of being finalised.

The partnership could have an extensive impact on India and other emerging markets, the ET article said.

This could be the first big deal under the new Tata Motors Chairman N Chandrasekaran, although the talks began during Cyrus Mistry's tenure.

Both companies are also looking at the possibility of Volkswagen's MQB A0 platform being used by Tata Motors, said ET's sources.

Since both companies are somewhat financially stretched - Tata from its loss-making domestic business and Volkswagen from the 'dieselgate' crisis - a partnership could be the only way to invest for the future.

Both companies declined to comment on the developments. However, a Tata Motors spokesperson said, ''As prevalent in the automotive industry, we regularly have discussions with different companies to explore future collaborations but we do not have any specific announcements at present.''

Moreover, with competition increasing from players like Google and Apple - tech companies who have seriously been researching into technologies such as self-driving cars - and with emissions and safety norms getting stricter, the auto industry has seen many rivals come together.

Most recently, Toyota and Suzuki came together to explore the possibility of cooperation in areas including environment, safety and information technologies, and mutual supply of products and components (See: Toyota, Suzuki plan to collaborate in emerging markets).