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VW and Tata Motors in talks to jointly develop small car?

If the entities manage to materialize a partnership, it would be a win-win situation.

In what is an interesting development, a German magazine reports that Volkswagen is planning to revisit its low-cost car project and it is in talks with Tata Motors for a possible partnership.

VW’s bid to develop a low-cost automotive brand with China as the primary base was shelved in the wake of dieselgate.

Tata Zica 42 Logo

Tata Motors with its proven track record in frugal engineering could just be the correct partner for VW to realise its low-cost car dreams.

Manager Magazin of Germany now reports that the initial project didn’t quite manage to meet the cost targets set by VW top management and hence now the company is exploring other ways to materialize its vision. Holding talks with Tata Motors regarding a possible cooperation could be the way forward for VW to come up with an affordable emerging market-spec product.

Nothing is concrete as of now. If the talks with Tata attains fruition, the Indian automaker could partially or fully develop VW’s low-cost car.

Tata Tiago launch

If the partnership becomes reality, Tata Motors could partially or fully develop VW’s low-cost car.

VW’s choice of Tata Motors as its potential partner may come as a surprise but the Indian automaker has a proven track record when it comes to frugal engineering. The Tata Nano’s initial price point turned the attention of the global auto industry towards the brand. The newly launched Tiago hatchback too stands testament to Tata’s ability to come up low-cost products.

Also read – Tata Q501 exported to the US for testing

If Tata Motors expertise in cost management and VW’s expertise in vehicle engineering come together, we are in for some interesting marketing-defining products.

Tata Tiago Aktiv Concept – Photos

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About the author

Nithyanandh Karuppaswamy

Winner of national level automotive quiz competitions, Nithyanandh aka Nithz jumped into the blogosphere right after gaining a degree in Mechanical Engineering. Love for automobiles and an even greater drive to share his knowledge with the automotive community, Nithz is Deputy Editor at RushLane.

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