Its official! Tata and Volkswagen to jointly develop cars and here's what you should expect from them - The Financial Express

Its official! Tata and Volkswagen to jointly develop cars and here’s what you should expect from them

Volkswagen-owned Skoda will take charge from the German carmaker's end and Tata would benefit from VW's technologies in its 'FutuReady' cars

By: | Updated: March 10, 2017 4:28 PM

After what was speculated to be the largest partnership in the history of the global automotive industry, two of the largest brands, Tata Motors and Volkswagen AG, have officially come together to share their technologies for future vehicles. The Memorandum of Understanding signed today states that both companies will look at a long-term partnership and jointly develop the upcoming cars from both the multi-nationals. Skoda would take charge from Volkswagen's end in which Tata would benefit from the technological advancements of the German company. The new cars from Tata and Skoda in India will be first introduced in the mass-market segments, later on moving towards the premium space.

At the occasion, Guenter Butschek, CEO and MD of Tata Motors said, “We are delighted to announce our potential cooperation with Volkswagen Group and Skoda. We strongly believe that both the companies, by working together, can leverage from each other’s strengths to create synergies and develop smart innovative solutions for the Indian and overseas market. This is in alignment with Tata Motors’ efforts to make itself ‘FutuReady’ by embracing new technologies, fostering higher platform efficiency and offering solutions that connect with the aspirations of our customers.”

Also Read: Upcoming cars in India in 2017 under Rs 10 lakh

The recent introduction of the Racemo sportscar at the 87th Geneva Motor Show under the company's performance sub-brand, TAMO and other cars which would be launched should benefit from Volkswagen's technologies. Likewise, a good aftersales score of Tata would work in Skoda's favour who has been having a hard time in providing good after sales service. The Indian carmaker, Tata scored 888 points and shared the second position with Hyundai India.

What the consumer can expect from this partnership is more convenience, safety and security features trickling down to the mass-market level as well as better hybrid/electric vehicles for the future. Currently, the FAME (Faster Adoption of Hybrid and Electric Vehicles) scheme offers a subsidy of Rs 1.38 lakh for hybrid or electric four-wheelers, which would prove beneficial for the end user in the entry-level segments. Tata is also going to introduce a hatchback and an SUV based on the MOFlex platform that also underpins the Racemo.

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