Automotive partnerships are becoming very vital to becoming successful in the markets in the modern world. While there has been news about Toyota and Suzuki may form a partnership, there might form an all new alliance. According to a report in ETAuto, Tata and Volkswagen may join hands in the future. The report says that both the companies are in advanced talks for the partnership and a formal announcement will be made on March 7, 2017, at the Geneva Motor Show.
The joint venture may be a technological partnership that will explore the possibility of sharing the modular platforms for India and other emerging markets. The shared platform may also include the new advanced modular platform; Tata Motors are currently developing that. Volkswagen’s role will be to provide technical knowledge that will enable both the companies to produce multiple platforms based on the modular architecture.
The ETAuto report also says that both the companies are exploring the usage of Volkswagen’s A0 platform by Tata Motors. The partnership will result in quicker returns on investment as it will allow both the companies to incorporate newer platforms quickly.
Tata Motors has a long history of partnerships. In 2001, the company explored business opportunities with Peugeot Citroen PSA, which failed. Later, Tata Motors inked a deal with Fiat to manufacture and distribute their vehicles in India. In 2008, the Indian company acquired the Jaguar Land Rover brand. In 2011, Tata Motors explored partnership with VW for entry level segment cars.
Tata has also explored opportunities to tie-up with Cherry Automobiles of China, with who JLR already has a JV in the Chinese market. The new venture between the companies will be crucial to the Indian market as both the companies do not have a gripping hold of the Indian market but they together, they may come out as a stronger competition.