Tata Motors in product development pact with Volkswagen Group

Tata Motors has signed a long-term partnership with German auto makers Volkswagen Group and Skoda Auto to explore opportunities to jointly develop products.

Under the memorandum of understanding (MoU) signed on Friday, Skoda Auto will take the lead on behalf of the Volkswagen Group to develop vehicle concepts in the economy segment.

Tata Motors and Volkswagen Group have also identified areas for partnership for the two companies.

Tata Motors and Skoda Auto, representing Volkswagen, will detail the guiding principles and terms of cooperation in the next few months. Post successful completion of definitive agreements, the two companies will start joint development work and joint value-chain activities.

Based on this joint work, Tata Motors plans to launch products in the Indian market, starting calendar year 2019.

''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,'' said Guenter Butschek, CEO and managing director, Tata Motors.

''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," he added.

Guenter Butschek, CEO & MD of Tata Motors, Matthias Mueller, CEO of Volkswagen AG and Bernhard Maier, CEO of Skoda Auto, signed the agreement.

''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.

''We are looking forward to the joint project with Tata Motors. Delegating project responsibility to ŠKODA underscores the great confidence of the Volkswagen Group in the ability of our brand. Together with Tata we will be specifying the concrete opportunities for collaboration over the coming months,'' Bernhard Maier, CEO of Škoda Auto, stated.