Although it has been a household name in India, Tata came into global prominence when it acquired the Jaguar and Land Rover businesses from Ford in 2008. As a parent company, it’s done wonders for the JLR brand, but as a standalone automotive brand, Tata Motors hasn’t grown any bigger or better than it used to be.

It’s with a view to change this situation that the Indian brand has entered into an alliance with Volkswagen Group. Matthias Müller, CEO of Volkswagen AG, Bernhard Maier, CEO of ŠKODA Auto and Günther Butschek, CEO and managing director of Tata Motors Ltd., signed a memorandum of understanding, which will form the basis of “long-term strategic cooperation in clearly-defined fields.” The stated goal of the partnership is to bring together the expertise of both car manufacturers to jointly develop vehicle components and concepts.

From the Volkswagen Group, Škoda Auto will lead the project, as it’s a brand that’s already got a firm foothold in the Indian market. The result will hopefully be an expanded product portfolio for the German group in the Indian subcontinent, as well as other growing emerging markets. "Our aim with the envisaged strategic partnership with Tata Motors is to lay the foundations in the Group and the brands that will enable us to offer customer-oriented mobility solutions in the emerging, fast-growing automobile markets, as elsewhere, says Matthias Müller. “By offering the appropriate products we intend to achieve sustainable and profitable growth in very different parts of the world. That is why we are systematically pursuing our regional growth strategy”, he adds. If “very different parts of the world” will include the Middle East as well, then our market could also benefit from new compact, efficient models that could emerge from this partnership.

We’ll be keenly following the development of this alliance and will bring you any updates as they emerge.