Mumbai: Tata Motors
has entered into a joint venture with Italian auto major Fiat to manufacture passenger
cars, engines and transmissions.
50:50 joint venture, located at Ranjangaon in Maharashtra, will manufacture passenger
cars, engines and transmissions for Indian and overseas markets.
greenfield facility would involve an overall investment exceeding $650 million,
Tata Motors said in a statement.
progress of all the joint initiatives between the Fiat group and Tata Motors reflects
the strong potential of our relationship in India and abroad," Tata Motors
managing director Ravi Kant said.
JV will manufacture Fiat`s premium cars, Grande Punto and Linea (in the B and
C segments), its 1.3 litre multijet diesel engine, 1.2 and 1.4 litre FIRE gasoline
engine and matching transmissions, the statement said.
facility would also be used to roll out Tata`s next generation vehicles.
at the Ranjangaon unit is expected to exceed 100,000 cars and 200,000 engines
and transmissions. The plant will directly and indirectly employ over 4,000 people,
it said, adding, assembly of the new Fiat Palio has already commenced at the plant.
Kant will be chairman of the joint venture while Alfredo Altavilla, CEO of Fiat
Powertrain Technologies and senior vice-president business development of Fiat
Group, will be the vice-chairman. Rajeev Kapoor has been appointed as the president
and CEO of the new entity.
two companies already has an alliance under which Tata Motors mange distribution
and service of Fiat branded cars in India.