New Delhi : Automobile major Tata Motors on Friday entered into a Memorandum of understanding (MoU) for a long-term partnership with Volkswagen Group to explore strategic alliance opportunity for joint development of products.
According to the MoU, Tata Motors and SKODA Auto, representing the Volkswagen Group, will detail out the guiding principles and terms of cooperation in the next few months.
Further, Tata Motors said that after successful completion of the definitive agreements, the two companies will start joint development work and joint value-chain activities, reports IANS.
The MoU for future cooperation envisages Skoda Auto to take the lead on behalf of the Volkswagen Group to drive forward work towards development of vehicle concepts in the economy segment. “Based on this joint work, Tata Motors plans to launch products in the Indian market, starting calendar year 2019,” the automobile company said in a statement. Guenter Butschek, Tata Motors Chief Executive Officer and Managing Director, said: “We strongly believe that both the companies, by working together, can leverage from each other’s strengths to create synergies and develop smart innovative solutions for the Indian and overseas market.” “This is in alignment with Tata Motors’ efforts to make itself ‘FutuReady’ by embracing new technologies, fostering higher platform efficiency and offering solutions that connect with the aspirations of our customers.”
