Advertisement

VW Group and Tata Motors scrap strategic partnership plans

Efforts for a Skoda/Tata tie up to develop new cars for emerging markets have fallen through - for now

A plan hatched between the Volkswagen Group and Tata Motors to form a long-term strategic partnership for the Indian market has been cancelled – at least for now.

Back in March, the two firms signed a memorandum of understanding to explore potential cooperation. The development and manufacturing of vehicle components, with new production cars for India and other emerging markets was touted at the time, with Skoda set to be placed front and centre of any proposed partnership.

Advertisement - Article continues below

PSA completes £1.9bn purchase of Opel and Vauxhall from GM

Skoda announced in a statement: “both companies have concluded that at present, neither the technical nor the economic synergies are achievable to the extent desired by both parties. As a result, a planned strategic alliance will no longer be pursued for the time being.”

The firm is keen to stress that both firms have not ruled out future collaboration should circumstances change.

When the initial announcement was made earlier this year, Tata revealed that the partnership would target a rollout of new cars for emerging markets in 2019 - now off the table. 

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. 

What do you think of the VW-Tata partnership? Let us know below...

Advertisement
Advertisement

Recommended

SEAT and Skoda dealers give virtual tours of cars from their driveways
News

SEAT and Skoda dealers give virtual tours of cars from their driveways

Customers can watch livestreams where product experts from SEAT and Skoda dealers answer their questions
14 Apr 2020
VW emissions scandal: VW installed ‘defeat devices’ in thousands of cars, High Court finds
VW Emissions scandal update 2
Volkswagen

VW emissions scandal: VW installed ‘defeat devices’ in thousands of cars, High Court finds

The UK’s High Court has ruled that VW installed devices to cheat emissions tests in thousands of its cars
6 Apr 2020
Skoda SE Drive models join Fabia, Karoq and Kodiaq ranges
Skoda

Skoda SE Drive models join Fabia, Karoq and Kodiaq ranges

Skoda has announced SE Drive models for its Fabia, Karoq and Kodiaq ranges, adding extra style and tech kit
27 Feb 2020
Skoda boss calls on Governments to invest in EVs
Skoda

Skoda boss calls on Governments to invest in EVs

More subsidies are required from Governments to make small EVS affordable, says CEO
5 Feb 2020

Most Popular

New Skoda Octavia vRS line-up completed as petrol and diesel models arrive
Skoda Octavia vRS Hatchback

New Skoda Octavia vRS line-up completed as petrol and diesel models arrive

Skoda has unwrapped the complete Octavia line-up, which now offers a choice of petrol, diesel or plug-in hybrid powertrains
3 Jul 2020
New 2020 Ford Puma ST teased for the first time
Ford Puma

New 2020 Ford Puma ST teased for the first time

The sporty new Ford Puma ST will make its debut later this year, with the same 197bhp 1.5-litre three-cylinder engine as the Fiesta ST
3 Jul 2020
New Vauxhall Corsa-e 2020 review
Vauxhall Corsa-e hatchback

New Vauxhall Corsa-e 2020 review

The all-electric Vauxhall Corsa-e boasts up to 134bhp and a 209-mile range, but rivals offer better value for money
3 Jul 2020