Tata Motors, Skoda call off partnership plan

Earlier this year, Tata Motors and Volkswagen announced a partnership to jointly develop new products for growing markets. Now, the two companies have called of talks on the potential partnership.

Over the past months, both parties jointly conducted a technical feasibility study and commercial evaluation of the potential collaboration. Having concluded the evaluation, Tata Motors and Skoda Auto (a subsidiary of Volkswagen) have decided that the partnership may not yield the desired results. However, both parties have decided that they would remain open to collaborations with each other in the future.

As part of the deal, Tata Motors and Skoda were to work together to develop high-volume products including an entry-level sedan and a compact SUV. If the plan materialised, it would have given Skoda access to Tata's AMP modular platform and the first car to be built on the platform was expected to be rolled out in 2019.