Mumbai - The new Tata-Fiat joint venture will make Fiat’s premium cars Grande Punto and Linea and the Tata Motors’s new generation Indica cars in India.
Tata Motors said yesterday that it has signed a definitive joint venture agreement with the Fiat Group for manufacture of passenger cars and engines at Ranjangaon in Maharashtra.
The companies had earlier announced the setting up of a 50:50 joint venture to manufacture cars in the country.
In a press statement today, Tata Motors said the new joint venture, which is yet to be named, will manufacture Fiat’s premium cars Grande Punto and Linea (in the B and C segments respectively), 1.3 litre multi-jet diesel engine, 1.2 and 1.4 litre fire gasoline engines and matching transmissions. It will also manufacture Tata’s next generation vehicles.
Mr Ravi Kant, Managing Director of Tata Motors, will be the Chairman of the new joint venture.
Mr Alfredo Altavilla, CEO of Fiat Powertrain Technologies and Senior Vice-President, Business Development, of the Fiat Group, will be the Vice-Chairman.
Mr Rajeev Kapoor has been appointed as the President and CEO of the joint venture.
The Ranjangaon plant is expected make two lakh engines and transmissions and one lakh cars per annum.
Investment
The overall investment will be €650 million ( Rs 3,575 crore). The plant will directly and indirectly employ more than 4,000 people, the statement said. Assembly of the new Fiat Palio has already been commenced at Ranjangaon.
The distribution and service of Fiat brand of cars in the country 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 has 65 dealers and is likely to be expanded to 100 dealers by mid-2008, when the new Fiat models are expected to be launched, the statement added.
