[volkman10]

Tata Motors could develop an entry-level small car completely or partially for the German automaker. The vehicle will be sold through VW dealerships. The reason behind this association could be Tata Motor's expertise in developing cost effective cars. (Nano fame)

The Budget Car is designed for entry level markets like China and India.

Volkswagen was earlier unsuccessful in its earlier venture of budget cars as it could not contain the target cost.

The new car will be offered cheaper than the previously smallest VW model.

Discussions on the possible development contract to Tata would however driven by corporate strategy chief Thomas Sedran and partially performed.

The final decision will be taken by Herbert Diess, brand chief.


Source


Source 2

[DriveOnceMore]

Great news, in terms of the tie up.
A global brand with huge legacy and which has its roots in a low cost budget friendly car - the Beetle (Nano of Germany of its times) can't develop a low cost car for India? Strange.

Yes I admit that they tried to crack the nut with VW Up! but failed to launch it in here.

Now Tata Motors seems a wise partner to begin the hunt again as they know Indian market better than VW.

I wonder what happened to their parntership with Suzuki? They could have been a better option as well.

Now I Tata haters will start trolling with lines like 'get ready to see rattling VW' or 'most reliable brand partners with the most unreliable brand ' etc.

[volkman10]

Originally Posted by DriveOnceMore

I wonder what happened to their parntership with Suzuki? They could have been a better option as well.

VW and Suzuki tie-up ended like this- see link

Link

[Aaron:)]

Frankly, I am not very excited. Many international car makers have come and tried their luck in the budget segment, but they've all burned their fingers.

I hope they don't go the Honda/Toyota way and compromise on quality to keep costs down.

[narayans80]

I don't understand what does Tata get out of this? They are yet to find a footing in the Nano segment themselves, and are developing a potential Nano replacement themselves.

If VW's intention is to design a 'smart city car' like Nano, I think the market isn't ready for that. At present India is still a market for the jack of all trades, than to the master of few. The prices for such cars (VW Up! or Smart) too are priced similar to ones like the Fiat Panda, Suzuki Celerio in the European market. I doubt Indian pricing can be the same way.

[StarScream]

Originally Posted by narayans80

I don't understand what does Tata get out of this?

A confirmed contract manufacturing order from a global auto major. Sales won't be Tata's headache. They just make the number of cars required for a set price. Guaranteed revenue and guaranteed utilization of factories.

[GTO]

Mod Note: This news appears to be a bit too hard to believe. Lets wait for more reliable sources.

Thread closed for now.

[Majumdarda]

Though not exclusively related to this particular Pelican project, but just read that Volkswagen and Tata Motors to partner up for low cost car.

I understand that this is still on the papers at this stage, but I really loved the last line, "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."

Its now for the experts to advise the feasibility of the project and if it materialises, then what all we can expect?

Regards,


P.s. :- Please excuse for posting this here as I did not find any other suitable threads. If irrelevant, then moderators may please delete the same.

[Zappo]

Looks like a very potent development if it really comes through, and one that definitely deserves a thread of its own. Volkswagen has tried this several times in the past to be more effective in offering cost effective solutions at the entry level of the spectrum.

Business Standard has more on this and so have NDTV.