- Science & Tech
Tata and Volkswagen Group AG have signed an MoU to explore the possibilities of developing products together. Strangely though Volkswagen has appointed Skoda to lead the project on behalf of Volkswagen group brands. So in essence the Mou has been signed between three companies. As a part of the agreement the Indian giant and the German carmakers will look to share technologies and expertise in areas the companies excel in.
Secondly, Skoda values itself on practical and spacious products. This DNA is also something that Tata’s offerings have also prided themselves on. This combination might offer a greater rub-off benefit to Tata’s as brand Skoda has a stronger emotive connect with the Indian car buyers.
Tata could look to utilise VW’s immense knowledge to hone and better develop the AMP platform while the possibility of a jointly developed platform cannot be ruled out. Meanwhile Tata could stand to gain from VW Groups depth of knowledge in managing quality and bringing more technology, especially, hybrid power tech to the table. Though the terms of sharing tech are yet to be finalised but it would definitely entail Tata looking to benefit through VW’s technical know how.
Not to mention it could also aid in bringing the price of spare parts down as well. For those wondering about the scope of hybrid and electric vehicles, it is way too early to be able to comment on the possibility of the two giants co-developing hybrid or electric cars. But given Tata’s claim of the AMP being electric and hybrid powertrain compatible, the two companies could look into the green cars at a later stage.
Finally, Tata is yet to announce its second platform which (we sincerely hope) if developed in collaboration with Volkswagen could help both companies make a serious dent in the Indian automobile industry.