According to a report on February 22, Volkswagen Group is in deep negotiations with India's Tata Motors and hopes that the two sides will cooperate. This is another attempt by Volkswagen to join the emerging automobile market in India.
Insiders said that Volkswagen and Tata's joint research and development model plan is expected to be announced at the Geneva Motor Show in early March. In an e-mail, Volkswagen said: "The company is looking for potential partners to try to expand its product portfolio and tailor it to the specific conditions of the Indian market. However, any speculation is too early."
Tata Motors did not disclose relevant information. Only one spokesperson said in the mail: "The alliance is common in the automotive industry. Tata has started dialogues with a number of potential partners on future cooperation matters."
With the expansion of global automakers Fiat Chrysler, PSA Peugeot Citroen (PSA) and GM in the Indian market, the Indian auto market is increasingly competitive. For many years, the Volkswagen Group has been hoping to meet the needs of the Indian market and has always wanted to build an economical car. If the Volkswagen Group and Tata Motors can form an alliance, then for Tata Motors, the expertise of Volkswagen manufacturing can be obtained, and the public can also reduce production costs.
Previously, Volkswagen had cooperated with Suzuki Motors to produce small cars that had entered the emerging auto market. However, two years ago, there was a fierce dispute between the two parties, and this cooperation ended in failure.
In terms of volume, Tata Motors is the fourth largest automaker in India and is working hard to get rid of the debt-laden brand image. Tata Motors operates a loss in the Indian market, relying mainly on its Jaguar and Land Rover brands for profit.
From January to April 2016, in the Indian market, Tata Motors' volume increased by 13% to approximately 140,000 units; mass sales increased by 18%, and sales volume was approximately 40,000, ranking ninth. The overall sales volume of the Indian auto market increased by 9.2 percentage points to 2.5 million units.

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