Tata Motors to help Volkswagen develop an Economy Car for emerging markets

One might wonder why Volkswagen approaches Tata Motors to develop a car. Volkswagen has been working on a budget car project since years but failed to keep the costs under control and hence approached Tata Motors(known for developing the world’s cheapest car Nano) for help.

595The auto giant Volkswagen plans to restart its small car project Budget Car. VW management is in talks with with Tata Motors, Manager Magazin reported in its latest issue (release date: July 22).

The Indian automaker should develop the model completely or partially for VW, according to the Wolfsburg Volkswagen headquarters. VW has been working on the project own their own since years. The Budget Car is designed for entry level markets like China and India. For the restart it was internally renamed Economy Car.

The developed in the past model approaches were repeatedly stopped. The VW developers did not get especially the costs under control. The car will be offered cheaper than the previously smallest VW model. The responsibility for the current project lies with brand chief Herbert Diess. Discussions on the possible development contract to Tata would however will be looked after by corporate strategy chief Thomas Sedran.

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The German carmaker has repeatedly tried its hand at the compact car segment including a partnership with Japan’s Suzuki Motor Corporation but failed to crack the intensely competitive market. Tata Motors on the other hand successfully developed and launched one of the world’s cheapest cars Nano, highlighting its expertise in low cost vehicle development.

via: Manager Magazin

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Author: MyMotorWheels

I am a mechanical engineer and an automobile enthusiast.

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