Tata Motors has sealed a long-term partnership with the Volkswagen Group and Skoda Auto. This decision was taken to explore a “strategic alliance opportunity for the joint development of products”.

The agreement, which was signed by Guenter Butschek, CEO & MD of Tata Motors, Matthias Mueller, CEO of Volkswagen Group, and Bernhard Maier, CEO of Skoda Auto, outlines the scope and objectives of the partnership agreement.

Skoda will take the lead on behalf of VW and work towards the development of vehicle concepts in the economy segment.

Butschek said he strongly believes that both Skoda and VW can leverage from each other’s strengths to create synergies and develop smart innovative solutions for the Indian and overseas market.

“This is in alignment with Tata Motors’ efforts to make itself ‘FutuReady’ by embracing new technologies, fostering higher platform efficiency and offering solutions that connect with the aspirations of our customers,” he said.

Müller said their team is also looking forward to the joint project. “Delegating project responsibility to Skoda underscores the great confidence of the Volkswagen Group in the ability of our brand,” he said. “Together with Tata we will be specifying the concrete opportunities for collaboration over the coming months.”

Based on this partnership, Tata said it plans to launch products in the Indian market at the beginning of 2019.