Italian auto major Fiat and Tata Motors on Thursday entered into a joint venture to produce cars, engines and transmissions.
Under the 50:50 joint venture agreement, the partners will manufacture passenger cars, engines and transmissions for Indian and overseas markets at the facility located at Ranjangaon in Maharashtra.
The overall investment in the facility would exceed $650 million, Tata Motors said in a statement.
“The 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, who will also be the chairman of the joint venture, said.
The venture would manufacture Fiat’s premium cars, Grande Punto and Linea (respectively 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, adding, one of Tata’s next-generation vehicles would also be manufactured at the unit.
Alfredo Altavilla, chief executive officer of Fiat Powertrain Technologies will be the vice-chairman of the venture, while Rajeev Kapoor has been appointed as the president and CEO of the new entity.