Rumour: Tata Motors & VW mulling platform sharing partnership

Tata Motors and Volkswagen are reportedly planning to enter a strategic partnership for platform and technology sharing. Talks about the partnership are said to be currently underway, with an official announcement likely coming around the Geneva Motor Show next month.

Through this partnership, the two automakers are aiming to share modular platforms that will underpin their respective products for India as well as other emerging markets. Tata Motors is developing an advanced modular platform (AMP) which it aims to use over various models in different segments. If the partnership plans eventually materialise, Volkswagen might use this AMP platform to develop targeted products for the emerging markets. On the other hand, VW group's MQB A0 platform, which underpins the Polo, might be used by Tata Motors.

The partnership will not only enhance the economies of scale and bring the final product cost down, but will also help the automakers to respond more quickly to changing market preferences. Reports suggest that the partnership talks are in the final phases as the two companies are currently finalising whether the deal would result in a new joint venture firm or will be just a technological tie-up.

Source: ET