VW signs deal with Tata
Confirming earlier rumours, Volkswagen has signed an agreement with Indian group Tata Motors to jointly manufacture vehicles for India and the wider subcontinent. The deal gives the German manufacturer access to a market from which it had been largely absent, reports Journalauto.com.
The details of the deal are still to be decided. It is as yet unclear, for example, whether the joint venture would produce only parts or entire vehicles, and if so, which models. The Memorandum of Understanding only mentions that VW and Tata will examine "the possibilities for long-term strategic cooperation in clearly defined areas".
Moving into India will help VW achieve its goal of achieving long-term growth in fast-growing markets, with products adapted to the various markets. The Indian car market certainly is an attractive target for VW: since 2000, it has grown by an average of 10% per year, and it could double between now and 2025 to around 6 million new cars per year. That would make India the third-largest car market in the world, after China and the U.S. Two-thirds of the cars sold on the Indian market are in the low-cost segment, below €5,000.
Image: Agencia Brasil, CC BY 3.0 br
| 10/03/2017 | Frank Jacobs