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The Volkswagen Group and Tata Motors have officially signed a memorandum of understanding (MoU), and will begin working on “long-term partnership” centred around India and the subcontinent.

According to the two parties, the ultimate goal is to expand their offerings through jointly developed products. This will, no doubt, lead to models sharing common platforms, and, possibly, hard points, sheet metal and interior fittings.

Tata says that the companies will “develop innovative solutions for [the] Indian and overseas market”, and help the Indian car maker embrace “new technologies”.

For the Volkswagen Group, Skoda, presumably because of its position as a value brand, will take the leadership role in this alliance with Tata.

With the MoU signed, the companies will begin work in setting out the official framework and rules for their partnership. This process, the parties say, will occur “over the coming months”.

As such, no further details about the deal’s specifics have been released, although Tata expects to have its first products from the alliance on the market by 2019.

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Above: Tata Nano Gen X.

According to a report by Autocar India last week, Skoda and Volkswagen will make use of Tata’s newly developed Advanced Modular Platform.

Reportedly, Volkswagen initially wanted to use a version of its MQB component matrix, but couldn’t find a way to cut enough cost out of the setup.

For Volkswagen and Skoda, the hope is that this alliance will allow them to develop products that are sized and priced attractively for India and other developing markets. If a Tata platform is indeed used, the addition of at least two extra brands should see significantly improved economies of scale at work.

Volkswagen will hope that this new alliance with Tata proves to be more successful and less fraught than its dalliance with Suzuki, the dominant force in the Indian market.

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