Mumbai: Italian automaker Fiat has said that it was looking at providing engineering and manufacturing support to its joint venture partner Tata Motors for its Rs1-lakh car to be produced from the Singur plant in West Bengal.

"We are looking at providing engineering and manufacturing support for the Tata small car project...We will offer our expertise," said Alfredo Altavilla, CEO, Fiat powertrain technologies and senior vice-president, Fiat Group Automobiles.

Tata's Rs1-lak car is expected to roll out by mid-2008 and Tata Motors has said the prototype is ready.

Ravi Kant, managing director, Tata Motors, had said, "Fiat has made an offer to be part of the Rs1-lakh projeact and we have accepted the offer and added we are looking what further can be done." Earlier last year, Tata Motors had entered into a joint venture with Fiat with an investment of Rs4,000 crore at Ranjangaon in Maharashtra to manufacture one lakh cars and two lakh engines annually.

Altavilla also added that Fiat would export its multijet 1.3-litre diesel engine and 1.2- and 1.4-litre gasoline engine to other western markets and also the localisation component in the engines would be around 80 per cent.

Fiat is currently outsourcing components worth €6 million from India for its Western markets.

The company will also manufacture its new model Punta and Linea from the new Ranjangaon facility, he added.

Licence to make Tata pick up trucks
The Tata Motors-Fiat alliance will also drive into the commercial vehicle segment. It will also give Fiat entry into India's truck market, which are the world's fourth largest.

CNBC-TV18, reports, they've put pen on paper and will soon put trucks out on the road. Fiat and Tata Motors are taking their alliance outside India and into the commercial vehicles segment. Now Fiat will get the licence to make Tata pick-up vehicles at its Cordoba plant in Argentina.

The vehicle, to be powered by Fiat's engine, will sport the Fiat brand and roll out next year. Argentina will also be an export base for the vehicle.

"The pick up will be manufactured in Argentina and exported to Latin America and Western Europe," says Altavilla.

In another development, Iveco, Fiat's commercial vehicle arm, and Tata Motors have embarked on a 90-day feasibility study for co-operation in areas like engineering, manufacturing, sourcing and distribution of commercial vehicles. The alliance will consider working together in markets like South Africa, Latin America, China, Korea and, of course, India. Iveco will enter India and hopes to gain from its partner's strong network.

"In principle, we are considering to work with both brands in the market. We are looking at co-operating with the network or integral network. Of course in India, we can have Tata network that's the strongest," says Paolo Monferino, CEO, Iveco.

While Fiat's commercial vehicle business will benefit from Tata's strong network, Tata's small-car project may also benefit from Fiat's engineering expertise. Its advice has been sought on the small car project. That's a big vehicle deal that throws in a small car benefit as well.

Fiat may assist in Punjab Tractors' take over
According to another report, Fiat could back the Tata Group in its bid for India's fourth- largest tractor company, Punjab Tractors. A 45-per cent stake in Punjab Tractors is up for sale, reports CNBC-TV18.

Fiat chief Luca Montezemolo says this is part of the Tata-Fiat alliance's plan to also expand into commercial vehicles and tractors. Fiat also plans to bring Alpha Romeo, Maserati and Ferrari to India. It will also consider international acquisitions.