The Volkswagen Group has confirmed that its talks with Tata Motors over a possible "strategic partnership" have collapsed.
Back in March, the VW Group and Tata Motors announced the signing of a memorandum of understanding that formed the basis for "exploring long-term strategic co-operation in clearly defined fields". The goal was to jointly develop vehicle components and "possibly also vehicle concepts".
But now the German group's Skoda division has released a statement saying that it had "assessed and evaluated a potential strategic collaboration" with Tata Motors and, after "intensive and constructive discussions" over recent weeks and months, decided not to pursue the relationship.
"Both companies have concluded that, at present, neither the technical nor the economic synergies are achievable to the extent desired by both parties," the statement said.
"As a result, a planned strategic alliance will no longer be pursued for the time being."
The statement added that both companies "would like to emphasise" that they are "not ruling out possible future collaborations".