VW and Tata Motors plot partnership to bring Skoda to India in 2019

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Memorandum of understanding signed between VW and Tata will see Skoda leading project to make new cars for emerging markets

The Volkswagen Group has signed a memorandum of understanding with Tata Motors to form a “long-term” strategic partnership. The deal will see the two groups cooperate to develop and manufacture vehicle components in the near future, with new production cars for India and other emerging markets also targeted.

Full details of the terms of the agreement are still hazy, and Volkswagen says the contractual framework and guidelines surrounding the deal will be fully examined and defined in the coming months. However, it has been revealed that the group’s Skoda brand will lead the project.

Matthias Muller, CEO of the Volkswagen Group said, “Our [VW] 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, and elsewhere”.

According to Tata, the first vehicles to be spawned by the alliance will be ready for launch on the Indian market in 2019, should things go as planned.

Earlier this year, PSA group – who just this week acquired Vauxhall and Opel from GM – announced similar plans for the Indian market , confirming a deal with Delhi based manufacturing conglomerate CK Birla Group to develop new models on sale in India by 2020.

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