VW reportedly in talks with Tata Motors for small car project – Report

Posted on: Jul 26, 2016 - 2:55pm IST

Will be developed for emerging markets like China and India.

According to German publication, Manager Magazin, Volkswagen has restarted the budget car project, and are in talks with Tata Motors to co-develop the product.

VW Ameo vs VW Polo
The cars that will spawn out of the deal could be priced lower than VW’s entry level cars like the Polo and Ameo.

Internally codenamed as Economy Car, it’s unclear if Tata Motors will partially or fully develop the model for Volkswagen. It will mainly target emerging markets like India and China, and could be sold under a new low-cost brand that was confirmed to be under development by former Volkswagen Group CEO Martin Winterkorn.

However, the consequences of Dieselgate has forced VW to shelve many ambitious projects. The budget brand was to be VW’s 13th brand under its belt that would initially target China. The product lineup included budget-friendly SUV, hatchback and sedan that were intended to be manufactured and sold at a targeted price rage EUR 8,000 – 11,000 (INR 5.68 Lakhs – 7.81 Lakhs).

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VW could leverage on the Indian manufacturer’s know how of India-specific products and cost-effective development.

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With Tata Motors, VW can leverage the Indian manufacturer’s know how of India-specific products, and lean manufacturing. The German carmaker started deliveries of the VW Ameo this week.

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[Source: Manager Magazin]

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Aravind Jayachandran

In short, Aravind is a huge petrolhead and an automobile engineer. He is also a massive fan of Ferrari, and loves to collect die-cast models for inspiration.