Tata Motors, which became famous after they launched the cheap Nano in India, could share their expertise in the field with Volkswagen for the development of a new budget car.

According to ManagerMagazine, the two companies are currently negotiating to see how they will approach the matter, but it remains unclear, for the moment, whether VW will develop the model with help from Tata Motors, or if the latter will be in charge of the project entirely.

If VW sticks to the original plan, which was shelved when the cheating emissions scandal surfaced last year, then the Germans could apply a similar recipe to what Renault did with Dacia, putting older platforms of the Group to the test. Aimed at emerging markets such as India and China, the vehicle will likely lack features we normally take for granted, such as a multitude of airbags and air conditioning, which will probably be found on the options list.

Details on the budget car brand, announced initially by the former VW CEO, Martin Winterkorn, remain scarce, but reports indicate towards the launch of three models: a compact sedan, an estate and an MPV, with the cheapest one priced at roughly €6,000-7,000 ($6,600-7,700).

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