Tata Motors and Fiat Group announced on July 25 that they will establish an industrial joint-venture in India to manufacture passenger vehicles, engines and transmissions for the Indian and overseas markets. Both Fiat and Tata vehicles are expected to be manufactured in the same industrial facility.
Fiat will introduce its premium cars, Fiat Grande Punto and the new Fiat sedan and its small diesel engine. The facilities, based in Ranjangaon, Maharashtra, will produce 100,000 cars and 250,000 engines and transmissions.
"As we said at the time we signed the distribution agreement in India, this is a strategic partnership which is evolving by leveraging on the respective strengths and continuously identifying new opportunities to be jointly exploited not only in India but also on a global scale," Sergio Marchionne, CEO of Fiat Group said.
Towards that end, Fiat and Tata also revealed that they are studying industrial and commercial cooperation in Latin America. The companies will look at different vehicles, especially utility vehicles and pickups. They will explore the possibility of using the existing Fiat production facilities in Cordoba, Argentina. Products manufactured there would be sold in various Latin American and overseas markets under both Fiat and Tata brands.
"This is the beginning of what promises to be a far-reaching, long term relationship between Fiat Group and Tata Motors. Both companies have complementary strengths, convergent objectives and shared values. Together, we can meaningfully address markets in India and other select geographies, combining technologies, products and human skills of both organizations," Ratan N. Tata, chairman of the Tata Group and Tata Motors said.