Memorandum of understanding: Volkswagen Group and Tata Motors Ltd. to explore strategic alliance for joint development projects


  • Long-term partnership on Indian sub-continent envisaged
  • Goal: joint development projects to expand product portfolio
  • ŠKODA to lead project for Volkswagen Group brands
  • Project delivers on core initiative of "TOGETHER – Strategy 2025"

Matthias Müller, CEO of Volkswagen AG, Bernhard Maier, CEO of ŠKODA Auto and Günther Butschek, CEO und Managing Director of Tata Motors Ltd., have signed a memorandum of understanding (MoU) which forms the basis for exploring long-term strategic cooperation in clearly-defined fields. The goal of the strategic alliance is to bundle the expertise of both car manufacturers with a view to jointly developing vehicle components and possibly also vehicle concepts.


For the Volkswagen Group, the signing of the MoU with Tata Motors Ltd. marks a further trailblazing step in the context of "TOGETHER – Strategy 2025". Under the terms of the memorandum, the Volkswagen Group and Tata Motors will explore possibilities for a strategic partnership in India.

In order to share responsibility among the Volkswagen Group brands, ŠKODA Auto is to lead the project. The first step will address topics such as the application of specific market knowledge as well as local development expertise. In the long term, the Volkswagen Group is looking to further expand its product portfolio in the fast-growing emerging markets.

"Our aim with the envisaged strategic partnership with Tata Motors is to lay the foundations in the Group and the brands that will enable us to offer customer-oriented mobility solutions in the emerging, fast-growing automobile markets, as elsewhere. By offering the appropriate products we intend to achieve sustainable and profitable growth in very different parts of the world. That is why we are systematically pursuing our regional growth strategy", Matthias Müller, CEO of Volkswagen AG, commented.

"We are delighted to announce our potential cooperation with Volkswagen Group and ŠKODA. 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", Günter Butschek, CEO and Managing Director of Tata Motors Ltd., commented.

"We are looking forward to the joint project with Tata Motors. Delegating project responsibility to ŠKODA underscores the great confidence of the Volkswagen Group in the ability of our brand. Together with Tata we will be specifying the concrete opportunities for collaboration over the coming months", Bernhard Maier, CEO of ŠKODA Auto, stated.

The contractual framework and the guidelines for a strategic cooperation between the Volkswagen Group and Tata Motors Ltd. will be examined and defined in detail over the coming months. Until then, the parties have agreed not to disclose any information.

Tata Motors Ltd.: Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 2, 75, 561 crores (USD 41.6 billion) in 2015-16. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, South Africa and Indonesia. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. It also has an industrial joint venture with Fiat in India. With over 9 million Tata vehicles plying in India, Tata Motors is the country's market leader in commercial vehicles and among the top in passenger vehicles. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia, South America, Australia, CIS and Russia.

The Volkswagen Group with its headquarters in Wolfsburg is one of the world's leading automobile manufacturers and the largest carmaker in Europe. The Group comprises twelve brands from seven European countries: Volkswagen Passenger Cars, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN. The Group operates 120 production plants in 20 European countries and a further 11 countries in the Americas, Asia and Africa. Every weekday, over 610,000 employees worldwide produce nearly 42,000 vehicles, and work in vehicle-related services or other fields of business. The Volkswagen Group sells its vehicles in 153 countries. With its "TOGETHER – Strategy 2025" future program, the Volkswagen Group is paving the way for the biggest change process in its history: the realignment to become a globally leading provider of sustainable mobility.

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