The Rs 4,000-crore Tata-Fiat joint venture took off on Monday, with the new Palio Stile being rolled out from the Ranjangaon facility, 60 km from Pune. The JV will generate 4,000 jobs and another 20,000 indirect jobs, with the total investment being made over a five-year period. The facility will be a platform for a slew of new generation Tata cars as also more cars from the Fiat stable — Grande Punto and Linea — by 2008. The plant, with a capacity to manufacture one lakh cars and two lakh engines and transmissions, is a unique venture where two leading car manufacturers are sharing the same facility.
“The Ranjangaon plant is a firm step in the progression of the strategic alliance between the two organisations. The plant will help our products benefit from Fiat’s global manufacturing practices and technology. The production capacity will be shared amicably” said Ravi Kant, MD, Tata Motors.
As for Tata’s Rs 1-lakh car, where Fiat is providing technical assistance, Ravi Kant did not rule out Fiat introducing the car to other markets. “This is within the realm of possibility,” he said. According to Fiat’s India head Giovani de Filippis and Stefan Ketter, senior vice-president, manufacturing, Fiat Group, this was the first step in working together with Tata and there was more to come.
The sales of Fiat cars in India has doubled since Tata Fiat dealer network was set up in March 2006 and is set to double this year, de Filippis said.