The story on what went wrong with the Skoda- Tata alliance.
1. Volkswagen wanted to use Tata’s advanced modular platform (AMP), which consolidates six platforms to just two and gives greater economy of scale to build cars and SUVs of different shapes and sizes, for products below its Polo hatchback in emerging markets.
2.Volkswagen also sought access to Tata’s supplier base to reduce costs.
3. Tata Motors, on the other hand, wanted an international opening with Skoda through co-branding of its jointly developed products.
4. But its management was upset since there was no significant progress over the matter realed to above.#3.
5. In lieu of technologies in pedestrian safety and hybrid technology space, VW also wanted Tata Motors to share product attributes for emerging markets, especially at the foundation technology level, which has to do with ride and handling, electronics, etc. Tata Motors was reluctant to share the information.
6. VW realized that the investment that it would make in the Tata JV will be equal to what it invests on its own in MQB.
With the above, the Alliance is off and VW has now moved ahead.
The Volkswagen Group group will consider a proposal in September to introduce its Modular Transverse Matrix (MQB) platform in India. If approved the Polo / Virtus and its crossovers would be on priority.
We can confirm that the Volkswagen Group has a long-term commitment in India. The details of how the Group will position itself in the future in India is under discussion and will be communicated once finalized