VW Had India On The Brain, Renews Talks With Tata

Diversifying markets could mean big profit gains for VW Audi.

byCaleb Jacobs| PUBLISHED Feb 23, 2017 5:20 PM
VW Had India On The Brain, Renews Talks With Tata

Volkswagen's push in foreign markets has made them especially successful as of late. With much thanks due to their success in China, they became the world's largest automaker in 2016. They're now in search of growing that boom even further into India as they have once again started talks with Tata Motors for a future alliance between the two according to Automotive News.

Tata is, without a doubt,  the largest Indian auto manufacturing group. They hold a ton of market share in their home country, making them an especially desirable asset for VW. With their knowledge of the demographic, they would enable VW and open up closed doors to help expand their audience. Other manufacturers like PSA and Fiat Chrysler have already ventured into India, making it an already competitive market with global rivals.

The partnership would be significant for both VW and Tata. Volkswagen is an obvious help as they bring along loads of knowledge and influence, making it a worthwhile deal for Tata. With that being said, Tata knows how to handle themselves abroad as well as they own Jaguar and Land Rover. They brought in nearly $40 billion in revenue last year, showing their worth even further. The pair would be a powerful duo, putting them at an advantage to the rest of the field.

If the two conclude on a joint undertaking, expect to see an influx of mid-size sedans for the Indian market. This is something that Volkswagen does very well, making a strong case for their potential success. A promising demographic of 1.3 billion is enough to make any automaker kick it into gear, so expect VW to go to great lengths to make this deal happen.