Tata Motors, Fiat hold manufacturing talks

Fiat and Tata Motors are poised to take their product plans to the next level

Before the launches lined up for the next two or three years, India’s largest automobile company Tata Motors and its longtime Italian partner Fiat have begun strategic talks. The partners are discussing product and investment plans which will be finalised for the jointly owned facility at Pune.

“There are discussions between two companies. These are in the initial stages and details will be shared in the coming period,” said a source. The product launches lined up for the next few years include sports utility vehicles, hatchbacks and compact sedans developed by Tata Motors and Fiat, independent of each other.

Tata Motors is nearing the advanced stages of product development for its compact utility vehicles due for introduction next year. Fiat is expected to infuse fresh life into its launch plans for new SUVs under Fiat and Jeep brands, which have been delayed by over a year.

Tata Motors will produce new SUVs at either Ranjangaon or Pimpri, both near Pune. Its upcoming hatchback and compact sedan, due for launch later in the year, however, will be produced at the Sanand plant in Gujarat, along with Nano. Another source added the proposed investment by Tata Motors is not different from the one announced by the company last year when it signed a memorandum of understanding with the Maharashtra government for Rs 4,000 crore. These investments will run till 2017, Tata Motors had noted.

Discussions are also on for sharing engines and transmissions which will be an extension of its ongoing agreement, the source added. When contacted a Tata Motors spokesperson said, “We do not comment on future product plans.” An email sent to Fiat went unanswered at the time of going to press.

The two companies jointly make products at the Ranjangaon facility that was set up seven years ago. Products such as Fiat Linea, Avventura and Punto and Tata Motors' Vista and Manza are built there in addition to petrol and diesel powerplants for domestic and export consumption.

The company split their sales and marketing set up in 2012 but retained the manufacturing plant located at Ranjangaon under the joint entity.