Skoda Not Ruling Out Future Partnership With Tata

2017 Skoda Octavia RS 245 Launched 1

Skoda Auto CEO Bernhard Maier hints his company could go into joint venture with Tata Motors in future; timeframe not confirmed

Skoda could go into a joint venture with Tata Motors in future, hints the Czech automaker’s Chief Executive Officer Bernhard Maier. As we reported earlier, Tata Motors signed MoU with Volkswagen, Skoda’s parent group for technical partnership. Skoda was given the responsibility to execute the partnership in India on behalf f Volkswagen AG.

However, the pact didn’t work out for both side and now, the auto majors are working on their own. But, it is clear that Skoda is not ruling out the possibility of a future partnership with the homegrown auto manufacturer. Initially, it was thought that, both Skoda and Tata will use the AMP architecture from the house of the latter and develop low-cost upmarket cars. But, Skoda didn’t find the AMP platform satisfactory. On the other hand Volkswagen’s MQB platform is supposed to be too costly for Indian market.

Updated Skoda Vision E Concept Frankfurt Motor Show 2017 3

Also read: Skoda Aims To Grab 5% Market Share In India With Budget Cars

In this scenario, Skoda is focusing on developing a new budget platform called Eco. The brand is eyeing to roll out a new low-cost SUV based on this platform that would arrive here sometime in 2020. As the Czech carmaker indicates, this new budget platform is based on the Volkswagen AG’s successful MQB A0 architecture.

The new Eco platform is expected to spawn out several cars thanks to its great flexibility. Skoda says that it will be able to lower the cost of the technical development of this MQB A0 based platform. Also, the brand is focusing on a solid supplier base in the country that will provide the company quality materials with cost advantage.

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Also read: Upcoming Cars in India in 2017-18 – 40+ Cars

Speaking about the possible Skoda-Tata cooperation, we can expect both the companies jointly develop some global standard premium products with aggressive pricing. Considering Tata Motors’ ambition to make more upmarket products, this could be beneficial for the homegrown brand. Also, this partnership will help Skoda in achieving its target to grab 5% share in the country’s auto market.

Source: Autocar India