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Volkswagen and Tata aim to improve car sales in India with partnership

Friday 10 March 2017, By Autovolo

Volkswagen and Tata aim to improve car sales in India with partnership

Volkswagen and Tata aim to improve car sales in India with partnership

Volkswagen and Tata have joined forces in an attempt to improve both carmakers sales in India and other emerging markets.

Both have signed a memorandum of understanding (MoU), under which they will jointly develop mechanical components, as well as potentially creating concept vehicles.

While Skoda Auto will take the lead on the project, owner Volkswagen Group says that it hopes to expand other parts of its group into ‘fast-growing emerging markets’ should the opportunity arise.

Matthias Müller, CEO of Volkswagen AG, said: “Our aim with the envisaged strategic partnership with Tata Motors is to lay the foundations in the group and the brands that will enable us to offer customer-orientated mobility solutions in the emerging, fast-growing automobile markets, as elsewhere.

“By offering the appropriate products we intend to achieve sustainable and profitable growth in very different parts of the world. That is why we are systematically pursuing our regional growth strategy.”

Günter Butschek, CEO and managing director of Tata Motors Ltd., added: “We are delighted to announce our potential co-operation 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.”