Tata Motors and Volkswagen are in the advanced stages of discussion for a platform-sharing tie-up.

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Volkswagen has been building market-specific cars for India and some other countries

Tata Motors and Volkswagen have been discussing about a partnership and the talks are now in the advanced stages, and now Tata Motors has stated officially that they are in talks with the German automaker. This partnership will have a significant impact on the Indian market as well as other emerging markets.

The partnership is likely to focus on technology tie-ups or vehicle architectures and negotiations are going on. The companies are studying whether the Volkswagen’s MQB A0 platform can be used by Tata Motors. The companies are also looking at sharing the AMP platform by Tata Motors and Volkswagen will share technical expertise on how to build multiple cars on the same platform.

The companies want to share architectures and capacities and get quicker returns on investment through economies of scale. Volkswagen’s Indian portfolio is largely built around the Polo and Vento and while the automaker considered introducing the MQB platform in India, the plan was later dropped due to high costs.

Tata Motors is going to consolidate from 6 platforms to 2 for all their cars. The company was earlier in talks with the PSA Group as well as Chery from China. This partnership will be the first major deal under the leadership of N Chandrasekaran even though the talks began under Cyrus Mistry’s term.

Tata-Volkswagen Partnership

– The announcement has been made at the Geneva Motor Show
– Volkswagen will help Tata make multiple vehicles on the same platform
– Tata will possibly share the AMP platform with Volkswagen

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Tata Motors currently uses 6 platforms which they want to reduce to 2