Volkswagen and Tata Motors to co-develop new budget car for India and China

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Tata Tiago Sunburst Orange (8)

Manager Magazin reports that German auto giant Volkswagen is in talks with Tata Motors to co-develop a small car for India and China, restarting the former’s Budget Car project. Volkswagen has been developing the Budget Car project for years now. However, the project, primarily targeted at emerging markets, kept running into troubled waters because Volkswagen’s developers could not get the costs under control. Now, with Tata Motors purportedly roped into the project, it will be restarted under a new name – Economy Car.

Also read – Rumor : Tata readying X451 premium hatchback to take on the Baleno, Elite i20 and Polo

It is being said that Tata Motors will develop the car completely or partially for the German manufacturer, and upon launch,  it will be even cheaper than the most affordable Volkswagen on sale anywhere in the world. The responsibility for the current project lies with VW brand chief Herbert Diess, while discussions on the possible development contract to Tata would however driven by corporate strategy chief Thomas Sedran.

Also read – Next-gen Volkswagen Polo coming in 2017; complete details here

Details on the small car and its derivatives, announced initially by the ex-VW CEO, Martin Winterkorn, remain scarce, but reports indicate towards the launch of four models: a hatchback, a compact sedan, an estate and an MPV, with the first one priced at roughly INR 3-4 lakhs. More details about the Economy Car project should be incoming within the next few months. so stay tuned!

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