AFP, FRANKFURT AM MAIN: German carmaker Volkswagen and India’s Tata Motors plan a future “strategic partnership” in the subcontinent to jointly develop parts and vehicles, the two firms said in a joint statement yesterday.
Europe’s and India’s largest auto manufacturers signed a memorandum of understanding (MoU) “to unite the expertise of the two carmakers in developing joint vehicle components and even possible concept vehicles,” the statement read.
Working with Tata will offer the Wolfsburg-based group “specific market knowledge as well as local development expertise,” the statement continued, adding that VW wants to expand its product range in India.
VW aims to “create the conditions to offer appropriate mobility solutions for the new, fast-growing car markets” with the deal, chief executive Matthias Mueller said.
While the path to neighbouring China is well-trodden by western carmakers, India still offers plenty of room for expansion.
Annual car sales are expected to double from just under 3.0 million in 2016 to more than 6.0 million in 2030, said industry expert Ferdinand Dudenhoeffer of Germany’s CAR research centre.