Tata Skoda Deal Off For Now because it wasn’t working on many reasons. Mainly because the uncertain policies in the market
Most of us very much aware of the Tata, Volkswagen and Skoda groups, all three of which boast a higher order name in the Indian Automobile manufacturers list. Native automobile manufacturers Tata and Skoda have halted their discussions around a possible partnership that would have made the automakers and Volkswagen Group share vehicle bases, engines and even fabricating facilities. Tata Motors and the Volkswagen Group had signed a memorandum of understanding during the initial months of this year with Skoda, a brand that operates under the Volkswagen Group, taking the lead to develop low-cost vehicles for the desi market.
Nevertheless, Tata Motors will sustain its positivity of probing the upcoming opportunities with the Volkswagen Group while having kept both the doors, wide open in order to readily welcome future partnerships. The fundamental logic for both the automakers to fall through is that the feasibility study has not yielded the desired results as expected by the company.
The joint study conducted over the past few months has resulted in both the automakers narrowing down that the anticipated areas of the partnership may not yield the desired results and that the cardinal perks for both were below the nominal threshold levels.
Both the automobile fabricators were not ready to risk themselves in forming a partnership as the savings were not appreciable and the presence of multiple challenges with regards to the structuring of the deal. The closure of the discussions would mean that Tata will have to work on their own to get the Advanced Modular Platform ready without any technical expertise from German automakers.
In addition to this, we also need to be aware of the fact that the Volkswagen Group would instantly look upon a new vehicle platform in order to stay compatible in the desi market. Therefore, in a mission to introduce a new range of products, the Volkswagen Group, must go ahead and invest in the MQB-A platform, even if it is an extravagant transaction.