Tata Motors Join Forces — Will Develop New Products Together

So, basically, the MoU was accepted by both the parties so that tey can explore a joint venture on the vehicle architecture, engines, and for the component sourcing.

The Memorandum will also allow both Tata and Volkswagen to have a wider range of discussions and exchange valuable information and data to understand their collaboration.

The spokesperson of Volkswagen India stated, o enlarge the product portfolio with tailor made solutions for e.g. in India, Volkswagen Group is discussing and defining these proactively with potential partners as well as between the brands of the Group. It is, therefore, premature to make any further disclosures at the moment."

Meanwhile, Volkswagen initially was about to start a joint development of their MQB-A platform, but, the company then realized that it will be too expensive for a the Indian market.

On the other hand, Tata Motors was keen to use their future Advanced Modular Platform (AMP) that has a definite cost advantage and a flexible architecture to produce a wider range of products.

At first sight, Volkswagen was in a bit of a doubt of whether they should use Tata's AMP platform or no. Then, the German auto giant agreed to use it after it was evaluated by the EDAG, which, is a German engineering firm.

With its future plans - "TOGETHER - strategy 2025", the German carmaker allows its brands with new responsibilities in the respective regions.

Tata Motors is consolidating from six platforms to two. Out of which, every hundred thousand units is additional leverage. On the other hand, any additional economies of scale will structurally improve the cost aggressively.

Last, but not the least, it is too early to tell what models will the Tata-Volkswagen alliance come up with sharing the same platform. Stay tuned for more information.

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