Tata Motors in talks with Volkswagen for partnership

PTI Geneva | Updated on January 13, 2018 Published on March 07, 2017

Tata Motors CEO & MD Guenter Butschek. File Photo   -  PTI

“We are in the midst of discussions. We will let you know in good time.”

Tata Motors today said it is in talks with the world’s largest auto maker Volkswagen for a possible partnership.

The company is exploring various opportunities, including partnership in its new advanced modular platform (AMP) development, possibilities of a joint venture or a contract manufacturing with the German auto major, in its bid to scale up. “I can only confirm that we are in talks but nothing to be announced yet,” Tata Motors CEO & MD Guenter Butschek told PTI here.

When asked how far the talks have progressed, he said, “We are in the midst of discussions. We will let you know in good time.”

Explaining the rationale behind such a move, Butschek said although the company has set sights on becoming among the top three passenger vehicle makers in India by 2019, it might not be enough to get the scale up effects. “Even if we get a large scale in the national business we might still not be up to the mark as far as scale effects are concerned,” he said.

“Therefore, we are, since a while, have been having intensive talks with different potential partners, who might join us on the AMP,” Butschek added.

It is aimed at bringing additional volumes through the new platform that the company will introduce to the market by 2018. “These additional volumes will bring higher economies of scale, which is going to give us the cost advantage and competitiveness,” he added.

The company is hoping to translate competitiveness into volume on one hand and into new feature capabilities on the other that will help it become more aggressive and desirable in the market place, he said. “This is the reason why we believe if we can find a partner it would be a very helpful strategic move,” Butschek said.

He, however, insisted that it needed to be the right partner in terms of alignment, on the objectives of joint development with the AMP as the reference point and right partner as far as volume is concerned. “Just getting a partner for the sake of getting one but not really adding substantial volume is not expected from such kind of partnership,” he said.

When asked what type of partnership would it be, a joint venture or a technical collaboration he said, “I am not ruling out one or or the other...It is always about the right fit.”

“If this is finally going to end up in a development JV or production JV or sharing of capacity contract manufacturing agreement, these are all subject for further discussion in order to make it a win-win for both the parties,” Butschek said.

Published on March 07, 2017

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.