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.

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...

Recommended

Future classics 2022: car investments that could make you money
Future classics - header image
Best cars & vans

Future classics 2022: car investments that could make you money

Identifying future classic cars is a tricky but potentially lucrative business, here are our future classic recommendations
23 May 2022
First look at new electric Skoda supermini due in 2025
Skoda EV
Skoda

First look at new electric Skoda supermini due in 2025

The upcoming Skoda small car will share a platform with similar Volkswagen and Cupra EVs
6 May 2022
New baby Skoda Enyaq to showcase brand’s future design language
Skoda baby Enyaq exclusive image
Skoda

New baby Skoda Enyaq to showcase brand’s future design language

As part of an announcement on its new design language, Skoda has teased a new electric SUV and our exclusive image previews how it could look
31 Mar 2022
Skoda’s next three electric cars will be smaller than the Enyaq
Skoda electric car plan
Skoda

Skoda’s next three electric cars will be smaller than the Enyaq

A seven-seat electric SUV isn’t likely, but the Skoda CEO says “never say never”
1 Feb 2022

Most Popular

Citroen Ami on sale in the UK this summer from £7,695
Citroen Ami UK - front static
Citroen Ami

Citroen Ami on sale in the UK this summer from £7,695

The compact quadricycle is pricier than first thought, but the Citroen Ami will still be the UK’s cheapest ‘car’
24 May 2022
New Mercedes T-Class 2022 review
Mercedes T-Class - front
Mercedes T-Class

New Mercedes T-Class 2022 review

The Mercedes T-Class tempts van-based MPV buyers with the chance to take a step up in perceived quality - but will they take the bait?
24 May 2022
New Maxus T90EV is first electric pick-up truck on sale in the UK
Maxus T90EV - orange truck static
News

New Maxus T90EV is first electric pick-up truck on sale in the UK

Chinese firm Maxus introduces the T90EV, the UK's first electric pick-up truck, with a 198-mile WLTP city range
24 May 2022