India's largest automaker Tata Motors have signed Memorandum of Understanding (MoU) with German automaker Volkswagen on Wednesday. This new deal is signed to tackle the technical collaboration, joint venture for vehicle architecture, engine and components sourcing.
An official shared the idea of partnership, "The idea is simple, to share architectures and capacities and bring an in quicker return on investment through economies of scale. Both the companies are stretched financially, yet they have no way out but to invest for the future, so the partnership was the only way out.”
As per the source, Volkswagen spokesperson said, “To enlarge the product portfolio with tailor made solutions for e.g. in India, Volkswagen Group is discussing and defining these proactively with potential partners as well as between the brands of the Group. It is, therefore, premature to make any further disclosures at the moment.”
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