This spring Skoda and Indian automaker Tata revealed a “long-term strategic cooperation in clearly-defined fields” but the relationship broke up in just five months – as “neither the technical nor the economic synergies are achievable to the extent desired by both parties.”
The idea behind this cooperation was pretty simple (for us, clearly not for them) – Skoda was looking to get help from the Indian partner to develop budget models for emerging markets. Tata meanwhile presumably had access to the technologies used by Skoda – which are actually the same as the ones deployed by the VW Group. While the cooperation failed, it seems Skoda is still looking to develop and market low-cost vehicles for emerging markets – and they want that sooner, rather than later, by the end of the decade.
Volkswagen Group’s head of strategy Thomas Sedran has allegedly confirmed in a recent interview Skoda’s interest in developing cheap cars for the Indian market, as well as the Brazilian and Iranian ones. In earnest, the German group has been struggling for a while to develop cheaper cars – budget models that would be able to compete in emerging markets as well as important ones such as China. So far we have yet to see anything concrete – but maybe Skoda, once a budget brand in itself, has the right assets to succeed.
Via Automotive News