Fiat, Tata Motors set up joint venture
Fiat Group Automobiles and Tata Motors have reached agreement for the establishment of the industrial joint venture in Ranjangaon in Maharashtra, India, to manufacture passenger cars, engines and transmissions for the Indian and overseas markets.
Fiat Group Automobiles and Tata Motors have reached agreement for the establishment of the industrial joint venture in Ranjangaon in Maharashtra, India, to manufacture passenger cars, engines and transmissions for the Indian and overseas markets. Assembly of the new Fiat Palio at Ranjangaon has already started.
The joint venture will manufacture Fiat's premium cars, Grande Punto and Linea (respectively in the B and C segments), its successful 1.3-litre Multijet diesel engine, its 1.2- and 1.4-litre Fire gasoline engine and matching transmissions. The joint venture will also manufacture one of Tata's next generation vehicles. The Ranjangaon facilities at regime are expected to exceed an overall output of 100,000 cars and 200,000 engines and transmissions. The overall investment will exceed €650 million. The plant will directly and indirectly employ over 4,000 people.
The distribution and service of Fiat-branded cars in India will continue to be managed by Tata Motors in line with the agreement signed in March 2006. The Tata-Fiat dealership network, which is currently distributing and servicing the Fiat Palio, today numbers 65 dealers and is meant to expand to 100 dealers by mid-2008, when the new Fiat models are expected to be launched.
Alfredo Altavilla, CEO of Fiat Powertrain Technologies and senior vice-president of business development of Fiat Group Automobiles, said: "The signature of the joint venture in India and the continuous development of new opportunities confirms the strong motivation and understanding between Fiat Group and Tata Motors."
The joint venture will manufacture Fiat's premium cars, Grande Punto and Linea (respectively in the B and C segments), its successful 1.3-litre Multijet diesel engine, its 1.2- and 1.4-litre Fire gasoline engine and matching transmissions. The joint venture will also manufacture one of Tata's next generation vehicles. The Ranjangaon facilities at regime are expected to exceed an overall output of 100,000 cars and 200,000 engines and transmissions. The overall investment will exceed €650 million. The plant will directly and indirectly employ over 4,000 people.
The distribution and service of Fiat-branded cars in India will continue to be managed by Tata Motors in line with the agreement signed in March 2006. The Tata-Fiat dealership network, which is currently distributing and servicing the Fiat Palio, today numbers 65 dealers and is meant to expand to 100 dealers by mid-2008, when the new Fiat models are expected to be launched.
Alfredo Altavilla, CEO of Fiat Powertrain Technologies and senior vice-president of business development of Fiat Group Automobiles, said: "The signature of the joint venture in India and the continuous development of new opportunities confirms the strong motivation and understanding between Fiat Group and Tata Motors."