Tata Motors and Volkswagen might jointly develop a small car for India

Germany’s popular automobile giant Volkswagen is planning to introduce “Budget Car” in Indian market. A German magazine named Manager-Magazin was the first to report about this latest development. According to the magazine, Volkswagen will be working on “low cost car project” and is in talks with Tata Motors, India’s popular name in automobile industry for a possible partnership.

This is not the first time Volkswagen has taken an initiative to develop the low-cost automotive giant, the company in the past was in a bid to develop low-cost automobile brand making China as its primary base and unfortunately couldn’t proceed because of dieselgate issue that happened recently.

The German Manager Magazin reported that the initial project did not meet the cost estimations projected by Volkswagen’s top management, so the company has now started to explore other ways to materialize the vision. Volkswagen’s primary focus will be emerging markets and partnership with Tata Motors, the Indian origin brand could greatly help the company to realize its vision to produce budget cars in India.

What Volkswagen is now trying to come up with is an affordable emerging market-spec product.

At this point in time, nothing is concrete and if the talks with Tata Motors succeed, the Indian automaker shall partially or fully develop Volkswagen’s low-cost car.

Volkswagen choosing Tata Motors as its potential partner is quite surprising but the Indian automaker has a proven track record in the field of frugal engineering. Tata Nano’s initial price point turned the attention of whole world towards the brand.

The Tata Tiago hatchback, the recently launched hatchback also proves Tata Motors’ ability to come up low-cost products.

Once again the consumers will be the winners, If Tata Motors expertise in cost management and Volkswagen’s expertise in vehicle engineering comes together to build a car which attracts the mass market.

Original Source: Manager-Magazin

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