Volkswagen will decide on the MQB platform’s local manufacturing in India next month.
Tata Motors and the Volkswagen Group had signed a MoU earlier this year (with Skoda taking the lead to develop low-cost vehicles for India) to explore a strategic alliance opportunity for joint product development. This alliance would allow the Volkswagen Group to use Tata’s Advanced Modular Platform (AMP).
But both, Tata Motors and Skoda ended their discussions around a likely partnership that would have had the two automakers and the Volkswagen Group share vehicle platforms and engines, etc. The primary reason for both the automakers to fall through is that the feasibility study did not yield the desired results as they expected. The Volkswagen Group realised that the investment that it would make in the Tata JV will be equal to what it invests on its own in the MQB platform.
Hence, Volkswagen Group will consider a proposal this September to introduce its MQB platform in India to significantly increase its India line-up. The Group will decide on the MQB platform’s local manufacturing in India which will help in the faster introduction of new products as well as in saving costs. Some of the cars from Audi, Skoda and Volkswagen sold in India already are underpinned by the MQB platform.
However, MQB coming to India could open up the doors for the Volkswagen Polo, the Polo-based sedan, the Virtus (the Vento replacement) and the Up! hatchback (sold below the Polo globally) as well. All these three cars could possibly come to India. The 2018 Volkswagen Polo is expected to be unveiled during the Frankfurt Motor Show next month.
Volkswagen Virtus & Polo MQB Platform
– Volkswagen Group will consider a proposal to introduce its MQB platform in India next month
– If the group approves this proposal, significant investments will be made in India
– Tata Motors’ AMP platform is not proving to be as cost-effective for the Volkswagen Group
Source – LiveMint.com