Latest Car News in India

Domestic car maker Tata Motors and German car maker Volkswagen Group have agreed to find the growth opportunities under one flag to enter in joint venture on sharing engines, components and architecture of their future vehicles.  The Memorandum of Understanding (MoU) regarding this was signed between both the legendaries during the ongoing Geneva International Motor Show. According to the sources various rounds of meetings were conducted between both these groups, to make sure that signing a MoU will not be a partnership, but both the groups will find the opportunities for developing new platforms for their vehicles, share their technology etc.

 

 

New regarding this was also confirmed by Mr. Guenter Butschek saying that the talks between both the groups are still going and at the midst of before the final decision is taken. On the other side, spokesperson of Volkswagen India had said that the group is committed for exploring its activities in Indian car market. According to him, this step of collaboration with Tata Motors is the part of company’s strategy “TOGETHER – Strategy 2015” where in the German car maker will strengthen its roots by finding new growth opportunities. 

 

At present both the groups are discussing the terms and conditions for partnership on the AMP platform (Advance Modular Platform) developed by the Tata Motors for India and other international markets. If this partnership takes a strong shape, then the German group will offer the technical support for developing multiple cars on this platform. 

 

Commenting on this one the sources of Tata Motors said, “The idea is simple, to share architectures and capacities and bring in quicker return on investment through economies of scale. 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,”. 

 

It would be interested to know that if these discussions take some concrete shape then it would be one of the greatest achievements achieved under the chairmanship of Natarajan Chandrasekaran, who took as the CEO of Tata Motors after the dismissal of Cyrus Mistry, couple of months back. Although, talks regarding this had commenced during his tenure, but were discontinued after his termination.