Volkswagen Group and Tata Motors have signed a memorandum of understanding to explore strategic alliance for joint development projects.

(L-R) Bernhard Maier, CEO of Skoda Auto, Matthias Müller, CEO of Volkswagen AG and Günther Butschek, CEO of Tata Motors Ltd..

The plans will explore a long-term partnership on the Indian sub-continent, including jointly developing vehicle components and possibly also vehicle concepts.

The project will be led by Skoda and comes as the Volkswagen group looks to expand its product portfolio in the fast-growing emerging markets.

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.”

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