Skoda Auto and Tata Motors ends their strategic partnership

Skoda Auto and Tata Motors ends their strategic partnership


Back in March 2017, Tata Motors, Volkswagen group and Skoda had announced their plans to enter into a long-term partnership for 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.

It is worth noting that back in June it emerged that the partnership had run into rough weather, 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.