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Tata Motors and Skoda Auto terminates their strategic partnership

Tata Motors and Skoda Auto terminates their strategic partnership
Nikhil Puthran Nikhil Puthran Thursday 10 August 2017, 18:32 PM

Tata Motors, Volkswagen group and Skoda had announced their plans to enter into a long-term partnership back in March this year. The collaboration would have meant joint development of products with the first rollout expected in 2019. However, this time around Skoda Auto and Tata Motors have mutually decided to end their detailed negotiations on a strategic partnership. The companies have concluded that at present, neither the technical nor the economic synergies are achievable to the extent desired by both parties.

Skoda Auto and Tata Motors partnership hit rough weather back in June, with differences over use of platform and doubts related to business viability. As a result, a planned strategic alliance will no longer be pursued for the time being. However, both companies have emphasised that post following the intensive and constructive discussions of the last few months, a future collaboration might likely fall in place.

As per the strategic alliance, Tata Motors had planned to launch products in the Indian market starting calendar year 2019. On the other hand, Skoda Auto was to take the lead on behalf of the Volkswagen Group to drive forward work towards development of vehicle concepts in the economy segment.

 

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