Volkswagen and Toyota are at war again, this time in India

According to the U.S. Automotive News, after Suzuki and Volkswagen ended their partnership, Toyota quickly took over and partnered with Suzuki. Judging from the current situation, Volkswagen and Toyota are ready to compete in the Indian market, and both have different partners. Toyota is partnering with Suzuki, which is from the same country, while Volkswagen is partnering with Tata Motors, a heavyweight Indian automaker. The U.S. Automotive News called the Indian auto market the most promising auto market in the world.

According to Automotive News, the risk of operating in India is relatively high for Volkswagen and Toyota. So far, neither company has established a firm foothold in the Indian auto market, so both companies hope to win over a strong local Indian partner in order to enter the Indian auto market with a strong presence. Among them, increasing the sales of their respective products in the Indian market is very important for the global expansion plans and global profits of both companies. According to relevant data released by the Society of Indian Automobile Manufacturers, in fiscal 2016, India's passenger car sales were 2,789,678 units, an increase of 12% over 2011. In the first nine months of this fiscal year (ending December 2016), India's passenger car sales rose 8.6%, making it one of the fastest growing auto markets in the world.

Volkswagen and Suzuki had previously cooperated. It is reported that the reason why the cooperation between the two parties ended was mainly because Volkswagen wanted to quickly enter the Indian market through Suzuki, while Suzuki wanted to obtain more advanced technology from Volkswagen. In addition, the cultural conflict between Germany and Japan was also an important reason for the failure of this cooperation.

Volkswagen Skoda Tata cooperation

In order to accelerate its development in the Indian market, Volkswagen signed an agreement with India's Tata Motors on March 10 to explore the possibility of long-term cooperation in the development of auto parts and concept cars. Volkswagen said in a statement that Skoda, a brand under the Volkswagen Group, will lead the relevant work of this cooperation with Tata.

The cooperation with Tata is a new attempt by Volkswagen Group after the end of the cooperation with Suzuki. India's Tata Motors is famous for its economical car Nano and is also the parent company of Jaguar Land Rover. When the Volkswagen Tata cooperation was announced, the two parties did not say whether this cooperation would have an impact on Jaguar Land Rover.

Volkswagen Group said that the cooperation framework and details of the cooperation areas of Volkswagen Tata will be worked out in the coming months.

Toyota quickly filled the gap after Suzuki and Volkswagen "broke up"

Last October, Toyota and Suzuki announced the prospect of a new alliance, and just one day before the Volkswagen Tata agreement was signed, Toyota President Akio Toyoda and Suzuki President Osamu Suzuki met with Indian Prime Minister Narendra Modi to discuss their plans in India. According to Automotive News, in the new alliance, Toyota will benefit from Suzuki's position in the Indian market, while Suzuki may receive technical assistance.

Suzuki Motor, through its Indian subsidiary Maruti Suzuki, has a market share of more than half of the Indian auto market, becoming the leading automaker in the Indian auto market. According to Suzuki estimates, the Indian auto market is expected to become the world's third largest auto market by 2020.

The Indian Prime Minister's Office said in a press release that at the meeting, Toyota and Suzuki presented their plans for the Indian market. Both parties hope to make full use of Toyota's advanced technological advantages and Suzuki's experience in small car production to promote the development of both parties in the Indian market. In addition, the participants also discussed the possibility of producing parts locally and exporting them.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.