Volkswagen and Tata Motors to partner up for low cost car?

In what is an interesting development, a German magazine reports that Volkswagen is planning to revisit its low-cost car project and it is in talks with Tata Motors for a possible partnership.

VW’s bid to develop a low-cost automotive brand with China as the primary base was shelved in the wake of dieselgate.

Manager Magazin of Germany now reports that the initial project didn’t quite manage to meet the cost targets set by VW top management and hence now the company is exploring other ways to materialize its vision. Holding talks with Tata Motors regarding a possible cooperation could be the way forward for VW to come up with an affordable emerging market-spec product.

Nothing is concrete as of now. If the talks with Tata attains fruition, the Indian automaker could partially or fully develop VW’s low-cost car.

VW’s choice of Tata Motors as its potential partner may come as a surprise but the Indian automaker has a proven track record when it comes to frugal engineering. The Tata Nano’s initial price point turned the attention of the global auto industry towards the brand. The newly launched Tiago hatchback too stands testament to Tata’s ability to come up low-cost products.

If Tata Motors expertise in cost management and VW’s expertise in vehicle engineering come together, we are in for some interesting marketing-defining products.

This article first appeared on Rushlane.com