SUNDAY TIMES - VW teams up with Tata in India move
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Sunday Times Business By Bloomberg, 2017-03-12 00:00:00.0

VW teams up with Tata in India move

Volkswagen logos adorn signboards at a dealership in Madrid, Spain, October 20, 2015.
Image: SERGIO MORAES REUTERS

Volkswagen plans to team up with Tata Motors on joint projects in India, renewing the German automotive group's push to increase its presence in emerging markets after its previous efforts failed to gain traction.

Tata and the European group's Skoda division will initially work together on market studies for developing mobility services, vehicle components and models, Wolfsburg-based VW said in a statement on Friday after the companies signed a memorandum of understanding.

Specific projects will be disclosed in coming months, the manufacturers said.

"Our aim with the envisaged strategic partnership with Tata Motors is to lay the foundations to offer customer-oriented mobility solutions in the emerging, fast-growing automobile markets," said VW CEO Matthias Mueller.

By teaming up with Tata Motors, Volkswagen could plug a gap in its strategy.

The maker of VW, Audi and Porsche cars has struggled for years to create vehicles thrifty enough to appeal to buyers in markets such as India.

Volkswagen's previous attempt to conquer emerging markets through a small-car partnership with Japan's Suzuki Motor unravelled in a bitter dispute settled just before the German group's diesel-emissions scandal erupted in 2015.

For Tata Motors, which also owns British luxury brands Jaguar and Land Rover, an agreement offers access to Volkswagen's massive global presence as it faces increasing pressure in India.