“Board members of SAVIWPL and M&M are scheduled to meet in the coming days,” one of the people said. Talks are progressing well, the person said, noting that both sides are likely to focus on the product, vehicle platform strategy and factories that the new joint venture will use.
The sedans and SUVs that Volkswagen and Skoda currently sell in the Indian market, and luxury brands Audi, Porsche and Lamborghini, will not be part of the joint venture, the source said.
ET reported in its August 30 edition that M&M and Volkswagen GroupThe wholly-owned subsidiary in India is in advanced stages of forming an equal joint venture to share costs, technology and vehicle platforms for future product development.
Skoda leads VW Group’s strategy in India.
Klaus Zellmer, Chairman of the Board of Skoda Auto, who is also in Mumbai, will lead the talks on behalf of SAVWIPL. The talks are likely to culminate in the two car manufacturers The signing of a memorandum of understanding for the planned joint venture is expected to happen in late October or early November, according to the people cited above. Spokespeople for SAVWIPL and M&M declined to comment.
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