Tata Motors on Friday has officially confirmed its long-term partnership agreement with Volkswagen Group and Skoda for joint development of products with the first rollout expected in 2019.
Based on the strategic alliance, Tata Motors plans to launch products in the Indian market starting calendar year 2019, as informed in a company statement.
This association could bear fruitful results for all the parties involved. Tata Motors could realign its engineering strategy by working with the German automaker. At the same time, Volkswagen could rely on Tata Motors’ local understanding of the market, helping them compete better in the automobile industry.
This is in alignment with Tata Motors' efforts to make itself 'FutuReady' by embracing new technologies, fostering higher platform efficiency.
Under the Memorandum of understanding signed between the partners, Skoda Auto will take the lead on behalf of the Volkswagen Group to drive forward work towards development of vehicle concepts in the economy segment.
Tata Motors and Skoda Auto, representing the Volkswagen Group, will detail the guiding principles and terms of cooperation in the next few months, the statement said.
(With PTI inputs)