Volkswagen-Tata Motors tie-up on the anvil?

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India’s automobile industry could very well witness a new gearshift, as Tata Motors and Volkswagen take a step closer towards a partnership. While there is no official confirmation on this tie-up, those in the loop suggest that the companies will make a formal decision later this year.

Volkswagen will aim to introduce new models suited for the Indian market following the tie-up.
Volkswagen will aim to introduce new models suited for the Indian market following the tie-up.

Tata Motors is the largest automobile company in the country in terms of revenue, while Volkswagen is the largest car manufacturer in the world. Tata Motors had a revenue of Rs.2,75,561 crores during the financial year 2015-2016.

Negotiations are currently underway to determine the nature of this partnership. The companies could choose the Geneva International Motor Show to make a formal announcement.

Exchange of technical knowledge and sharing of modular platforms top the list of negotiations, with Tata Motors keen to utilise the technical background of Volkswagen.

While Volkswagen has enjoyed success in India thanks to the Polo, it is facing stiff competition from Maruti Suzuki and Hyundai. Tata Motors too has seen a dip in numbers, with sales dropping 1% last month.

Globally, Volkswagen emerged as the leading automobile manufacturer, pushing Toyota to second position.

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