Tata and Skoda call off their tie-up

Tata Motors Ltd and Volkswagen’s Skoda were in talks for future collaboration in India. The companies have jointly announced that the alliance would not be formed. Various reasons like technical feasibility have been cited for the break-up.

Tata and Skoda call off their tie-up

Commenting on this development, Guenter Butschek, CEO and Managing Director, Tata Motors, said,

“We have evaluated the technical feasibility and degree of synergies for the envisioned partnership. We have concluded that the strategic benefits for both parties are below the threshold levels. However, we remain positive of exploring future opportunities with the Volkswagen group, given the relationship of mutual respect that we witnessed during the phase of our cooperation discussions.”

Earlier in March, both the companies signed a memorandum of understanding at the Geneva Motorshow. The automotive giants were to explore various options to bring down the cost of manufacturing and make the process more efficient and cost effective. The development was exploring of using Tata’s new Advanced Modular Platform (AMP) in the Volkswagen cars. It would have helped the brand to bring down the cost immensely.

Various reports suggest that the alliance hit a roadblock when Volkswagen group did not the AMP to be as cost-effective as they had expected. The alliance would have also given technology access of Skoda to Tata Motors, hence, helping the both.

Both have planned to continue their separate work like before. Skoda has plans to launch three new vehicles in India this year. This includes Skoda Octavia vRS, Kodiaq and Rapid Monte Carlo edition. Tata, on the other hand, will launch the much-awaited sub 4-metre compact SUV, the Nexon this year.

Shantonil Nag

Shantonil brings a refined blend of expertise and enthusiasm to motoring journalism at With a career spanning over 11 years, he anchors Cartoq's insightful car reviews and test drives. His journalistic journey began as a correspondent at, where he honed his skills in content writing and scripting car reviews. Later, as Senior Editor for, his expanded role included curating and structuring web content. At, his expanded role includes assisting the video team to create high-quality car reviews. (Full bio)