VW is looking for new markets as it recovers from its diesel emissions scandal.
Tata Motors, which is India’s largest vehicle company and owns Jaguar Land Rover, is also hoping to claw back domestic market share.
Guenter Butschek, chief executive and managing director, Tata Motors, has put in place a restructuring programme to help build up Tata’s lost sales for passenger and commercial vehicles by improving efficiencies, cutting production delays and building economies of scale.
VW pleaded guilty to three criminal charges in the US in January this year, and would pay fines totalling $4.3bn (£3.5bn) to settle charges over the scandal.
In November last year Volkswagen announced plans to cut 30,000 jobs worldwide with about 23,000 of the losses to be borne in Germany.