VW reportedly in talks with Tata Motors for small car project - Report

Will be developed for emerging markets like China and India.

According to German publication, Manager Magazin, Volkswagen has restarted the budget car project, and are in talks with Tata Motors to co-develop the product.

Internally codenamed as Economy Car, it's unclear if Tata Motors will partially or fully develop the model for Volkswagen. It will mainly target emerging markets like India and China, and could be sold under a new low-cost brand that was confirmed to be under development by former Volkswagen Group CEO Martin Winterkorn.

However, the consequences of Dieselgate has forced VW to shelve many ambitious projects. The budget brand was to be VW's 13th brand under its belt that would initially target China. The product lineup included budget-friendly SUV, hatchback and sedan that were intended to be manufactured and sold at a targeted price rage EUR 8,000 – 11,000 (INR 5.68 Lakhs – 7.81 Lakhs).

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With Tata Motors, VW can leverage the Indian manufacturer's know how of India-specific products, and lean manufacturing. The German carmaker started deliveries of the VW Ameo this week.

[Source: Manager Magazin]