Tata Motors, VW may Ride Together
Talks at advanced stage for sharing vehicle architecture & tech; details of partnership being worked out
Ketan Thakkar, Ruchika Chitravanshi & Sharmistha Mukherjee
Mumbai | New Delhi: Tata Motors, India’s largest automobile company by revenue, and Volkswagen Group, Europe’s largest car maker by volume, are said to be at an advanced stage of finalising a partnership that can have a wide-ranging impact on India and other emerging markets.
The contours of the partnership, on whether it will be a joint venture or a technology tie-up, are still being worked out, said five people with knowledge of the matter. They told ET that negotiations are making progress and could culminate in an announcement at the Geneva International Motor Show in March.
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and technology is at the heart of the discussion, said one of the persons. The companies are looking at sharing modular platforms for India and emerging markets, including the advanced modular
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platform (AMP) being developed by Tata Motors. Volkswagen may offer technical knowhow on producing multiple models based on modular architecture. The two companies are also exploring whether Volkswagen’s MQB A0 platform can be used by Tata Motors, said the people cited above.
“The idea is simple, to share architectures and capacities and bring in quicker returns on investment through economies of scale,” said the person cited above. “Both the companies are stretched financially, yet they have no way out but to invest for the future, so partnership was the only way out.”
Tata Motors has been held aloft by its Jaguar Land Rover unit with the domestic car business doing poorly. Turning it around is a key focus for chief executive officer Guenter Butschek, who is said to have a good equation with senior Volkswagen executives.
Both companies declined to comment.