INTERNATIONAL STRATEGIC

ALLIANCE BETWEEN TATA &

VOLKSWAGEN
BRIEF ABOUT TATA MOTORS :-
 Industry – Automotive
 Founded – 1945
 Parent Company- Tata Group
 Website - www.tatamotors.com
 Products – Automobile, Buses,
Military Vehicles, Automotive Parts
 Services- Automotive Design,
Vehicle leasing, Vehicle Service
 Headquarters – Mumbai
BRIEF ABOUT VOLKSWAGEN :-

 Industry – Automotive  Products- Automobile, Automobile

Parts, Commercial Vehicles
 Founded – 1937
 Headquarters- Wolfsburg,Germany
 Parent Company- Volkswagen Group
 Website – www.volkswagen.com
TATA GROUP SUBSIDIARY :-
VOLKSWAGEN GROUP SUBSIDIARY :-
WHEN DID THE ALLIANCE HAPPENED?

 The official confirmation of

this alliance came two days
after the news broke out that
is on 10 March 2017

L-R: Bernhard Maier, CEO of Skoda Auto,

Matthias Müller, CEO of Volkswagen AG, and
Guenter Butschek, CEO and managing director
of Tata Motors .
 COMMENT OF CEO OF VOLKSWAGEN
ON ALLIANCE :-
 "Ouraim 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. 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," said Matthias Müller, CEO of
Volkswagen AG.
COMMENT OF CEO OF TATA MOTORS
ON ALLIANCE :-
 "We are delighted to announce our potential cooperation
with Volkswagen Group and Škoda. We strongly believe
that both the companies, by working together, can
leverage from each other's strengths to create synergies
and develop smart innovative solutions for the Indian and
overseas market. This is in alignment with Tata Motors'
efforts to make itself ‘FutuReady' by embracing new
technologies, fostering higher platform efficiency and
offering solutions that connect with the aspirations of our
customers", said Güenter Butschek, CEO and MD of Tata
Motors.
COMMENT OF CEO OF ŠKODA AUTO
ON ALLIANCE :-
 "We are looking forward to the joint project
with Tata Motors. Delegating project
responsibility to Škoda underscores the great
confidence of the Volkswagen Group in the
ability of our brand. Together with Tata, we will
be specifying the concrete opportunities for
collaboration over the coming months," said
Bernhard Maier, CEO of Škoda Auto.
REASONS FOR THIS ALLIANCE
 Volkswagen had lower market penetration in India.
 Volkswagen was not able to produce in high volume.
 Volkswagen had difficulty producing low cost
competitive models.
 Tatawanted to expand its cars platform into modular
strategy and Volkswagen had expertise in that field.
 Tatawanted to improve engines and Volkswagen has
expertise in low displacement petrol engines and
turbo diesel.
 Skodaand Volkswagen both have struggled in India
and Tata wanted to go global.
EFFECTIVENESS OF THIS STRATEGY
 Volkswagen was able to better understand the Indian
automobile markets and implement its strategies accordingly.
 Likewise Skoda was also able to do the same.
 Volkswagen was able to localise 95% of the part production
for its cars which reduced the cost of parts and helped
Volkswagen make cost effective.
 Tata gained international exposure with the help of
Volkswagen .
 Tata was able to make better engines for its new cars with the
help of knowledge from Volkswagen with this alliance.
 Tata has also announced that in 2019 the first product from this
alliance will hit the market . That is yet to come in the market
estimated time would be the year end of 2019.
 THE END
 Assignment by Roll no – 71,72,73,74,75,76,77,78,79,80