Tata Motors And Volkswagen Look Set To Partner Up As Talks Reach Advanced Stage

The outline of the partnership is something both carmakers are working on, whether it will be a joint venture or a technology tie-up, according to people familiar with the matter who informed ET.

Negotiations are in the process, and the development could be revealed at the Geneva Motor Show, scheduled to take place in March. One of the persons familiar with the matter said sharing vehicle architecture and technology is the prime area of focus.

Both carmakers, Tata and Volkswagen, are looking at sharing platforms, including the advanced modular platform (AMP) being developed by Tata Motors, for India and emerging markets. Possibilities are that Tata Motors could also use Volkswagen's MQB A0 platform.

The idea is simple, to share architectures and capacities and bring in quicker returns on investment through economies of scale," said the person familiar with the matter.

Back in 2012, Volkswagen was exploring the Up platform for India and later dropped the project due to lack of clarity on viability. Later in 2015, the carmaker explored the MQB modular platform and dropped that too, because it was expensive.

Although car designs such as the Polo and Vento are quite outdated in India, Volkswagen does offer something special to the enthusiasts in the form of the Polo GTI pictured below.