Tata Motors announced the signing of a Memorandum of Understanding for a long-term partnership with Volkswagen Group and Skoda, to explore strategic alliance opportunity for the joint development of products.
The agreement was signed by Mr. Guenter Butschek, CEO & MD of Tata Motors, Matthias Mueller, CEO of Volkswagen AG and Bernhard Maier, CEO of Skoda Auto.
The document lays down the scope and objectives in order to reach agreement on the modalities and the terms of a long-term cooperation in identified areas of the new partnership.
Skoda Auto will take the lead on behalf of the Volkswagen Group to drive forward work towards the development of new concepts in the economy segment.
Tata Motors and SKODA Auto, representing the Volkswagen Group, will detail the guiding principles and the terms of cooperation in the next few months.
Post successful completion of definitive agreements, the two companies will start joint development work and joint value-chain activities.
Based on this joint work, Tata plans to launch products in the Indian market, starting in the calendar year 2019.