A very ambitious project... and we might not even get the car that comes out of it.
Volkswagen's more recent history with technical partnerships hasn't gone down particularly brilliantly. For sure, things are going along well with the Chinese firm FAW, but prior talks with Proton never truly got off the ground, and the alliance with Suzuki met its end in court. So, with hopes that history doesn't repeat itself for a third time, it appears that Volkswagen's in the process of forming a new working relationship with one of Asia's largest and most prominent car makers: Tata Motors.
Before you get excited that this new deal will be along the lines of the new engine arrangement between BMW and the Tata-owned Jaguar Land Rover, the deal instead is much more mainstream in nature. According to a report by the German motoring magazine Manager Magazin, VW and Tata are set to form a partnership which will result in Volkswagen not only getting the greater presence in India it's been craving for several years now (and one of VW's main aims with the failed Suzuki arrangement), but also the lending of some technical expertise from Tata in the development of a new budget car that shouldn't be too dissimilar in concept to the vehicles VW is co-developing with the aforementioned FAW.
In return, Volkswagen will likely offer Tata plenty of technology and assistance with the Indian firm's future projects. Such a scenario will especially be highly likely if Manager Magazin's claims that Tata "should develop the car completely for VW" end up being the case. No carmaker on the planet would agree to develop an entire car for another huge company without a hugely beneficial favor being agreed upon first. Of course, as this is all unconfirmed, the project could fall flat, and the nature of the vehicle means we'll likely only see the finished vehicle released in developing markets. Still, it'll be very interesting to see how this Volkswagen-Tata partnership progresses over the coming years.