Tata Motors to form venture with Fiat
Tata Motors will set up a joint venture with Italian auto maker Fiat to manufacture passenger vehicles, engines and transmissions for the Indian and overseas markets.
The proposed joint venture will come up at Ranjangaon in Maharashtra, where the two companies will undertake joint production.
Tata Motors and Fiat had in had in July this year signed a memorandum of understanding (MoU) to establish a joint venture manufacturing unit in India.
Fiat also recently received approval from the foreign investment promotion board to invest Rs2,000 crore in India.
The Ranjangaon facility will have capacity to produce in excess of 100,000 cars and 200,000 engines and transmissions yearly, at steady state. The plant will manufacture vehicles for the Indian and overseas markets.
Both Fiat and Tata vehicles will be manufactured at the same facility, which will be managed equally by the two shareholder partners, the companies said in a statement.
Fiat Auto will introduce its premium cars for the B and C segments, viz, the Fiat Grande Punto, and the Fiat Linea, launched at the Istanbul motor show in November.
Fiat already has commissioned the first assembly line for its Palio and Adventure models at Ranjangaon. Trial runs have already commenced and the first batch of cars will roll out in early 2007.
Fiat already has an arrangement with Tata Motors to distribute its cars through a joint dealer network. Currently, 42 Tata-Fiat dealerships are in operation. This will progressively increase to 100 outlets for the launch of the new models to cover the whole of the country.
Tata cars will be manufactured in the joint venture to utilise production capacities and to develop new Tata car models.
The engine manufacturing envisages the highly acclaimed Fiat 1.3-litre multi-jet diesel engine, the 1.4-litre and a new 1.2-litre gasoline engine, both of the 'Fire' family, and Fiat transmissions.
"This strategic alliance with Fiat enables the two Companies jointly to present a wider range of product offerings to the Indian market. It enables Tata Motors to access world-class powertrains from Fiat for its next generation car offerings while enhancing the model line at its dealerships.
Fiat's current cars are attractive in their styling and impressive in their performance. I am sure they will be as appealing to Indian customers as they have been to those of Western European markets," said Ratan N Tata, chairman of the company.
The joint venture will involve phased investments in excess of Rs4,000 crore and production of engines and new cars are expected to start in the beginning of 2008.
Fiat and Tata also have plans for industrial and commercial cooperation in Latin America.
Tata Motors, meanwhile, is also looking at options to launch commercial vehicles and passenger cars in China, preceded by a manufacturing plant.
The company has been looking at China for the last two years, but noting has been decided as yet. It has not been decided whether the entry would be through a joint venture, and is currently looking at all the possibilities. The options are open, said Tata Motors managing director Ravi Kant.
He said Tata Motors would need a manufacturing presence in Chinaif it is to sell its products there. He said dealings with component manufactures in China could be a way forward for the company for setting up its own operations there.
Tata Motors will set up a joint venture with Italian auto maker Fiat to manufacture passenger vehicles, engines and transmissions for the Indian and overseas markets.
The proposed joint venture will come up at Ranjangaon in Maharashtra, where the two companies will undertake joint production.
Tata Motors and Fiat had in had in July this year signed a memorandum of understanding (MoU) to establish a joint venture manufacturing unit in India.
Fiat also recently received approval from the foreign investment promotion board to invest Rs2,000 crore in India.
The Ranjangaon facility will have capacity to produce in excess of 100,000 cars and 200,000 engines and transmissions yearly, at steady state. The plant will manufacture vehicles for the Indian and overseas markets.
Both Fiat and Tata vehicles will be manufactured at the same facility, which will be managed equally by the two shareholder partners, the companies said in a statement.
Fiat Auto will introduce its premium cars for the B and C segments, viz, the Fiat Grande Punto, and the Fiat Linea, launched at the Istanbul motor show in November.
Fiat already has commissioned the first assembly line for its Palio and Adventure models at Ranjangaon. Trial runs have already commenced and the first batch of cars will roll out in early 2007.
Fiat already has an arrangement with Tata Motors to distribute its cars through a joint dealer network. Currently, 42 Tata-Fiat dealerships are in operation. This will progressively increase to 100 outlets for the launch of the new models to cover the whole of the country.
Tata cars will be manufactured in the joint venture to utilise production capacities and to develop new Tata car models.
The engine manufacturing envisages the highly acclaimed Fiat 1.3-litre multi-jet diesel engine, the 1.4-litre and a new 1.2-litre gasoline engine, both of the 'Fire' family, and Fiat transmissions.
"This strategic alliance with Fiat enables the two Companies jointly to present a wider range of product offerings to the Indian market. It enables Tata Motors to access world-class powertrains from Fiat for its next generation car offerings while enhancing the model line at its dealerships.
Fiat's current cars are attractive in their styling and impressive in their performance. I am sure they will be as appealing to Indian customers as they have been to those of Western European markets," said Ratan N Tata, chairman of the company.
The joint venture will involve phased investments in excess of Rs4,000 crore and production of engines and new cars are expected to start in the beginning of 2008.
Fiat and Tata also have plans for industrial and commercial cooperation in Latin America.
Tata Motors, meanwhile, is also looking at options to launch commercial vehicles and passenger cars in China, preceded by a manufacturing plant.
The company has been looking at China for the last two years, but noting has been decided as yet. It has not been decided whether the entry would be through a joint venture, and is currently looking at all the possibilities. The options are open, said Tata Motors managing director Ravi Kant.
He said Tata Motors would need a manufacturing presence in Chinaif it is to sell its products there. He said dealings with component manufactures in China could be a way forward for the company for setting up its own operations there.
