Tata, Fiat enter strategic alliance
Fiat cars will now be available in India through Tata dealers from March 2006, reports Deshbandhu Singh.Updated: Jan 14, 2006 17:24 IST
Fiat Group and Tata Motors on Friday announced signing of an agreement to co-operate on dealer network sharing, which encompasses the sale of Fiat-branded cars through selected Tata outlets throughout India.
Tata Motors will manage the marketing and distribution of the Fiat-branded cats in India. Following the agreement, a targeted selection of Fiat cars and the Tata product range along with sale and service of spare parts will be available from March 2006 through the Tata dealership network. Dealers will display the new Fiat logo alongside the Tata logo at their outlets.
This deal is the first result of the joint activity started after the signature of the memorandum of understanding between Fiat and Tata Motors in September last year.
Commenting on the deal, CEO of Fiat, Sergio Marchionne said that this agreement is a milestone in our presence in India. It enables us to increase our customer base in the country.
Chairman of the Tata Group Ratan Tata said, "I am pleased at this quick and definitive start of a potential long-term relationship."
"We believe this will soon result in more strategic alliances between the two organisations and across various markets."
Replying to a question, whether the two companies will go for joint production, considering Tata's strong manufacturing infrastructure in India, Ratan Tata said, This kind of decision would be taken later on. For now, this is a wonderful opportunity to generate the volume."
He said, "The best thing about this tie-up is that a new relationship is evolving.
Commenting on how Tatas will benefit from the tie-up, the chairman said, "As a car company we need to go beyond India. Fiat has a tremendous technology and the ties will have enormous value for Tata in this regard. We are very excited about the relationship."
"He also said while Tata will support Fiat in India, we need Fiat's support in Europe. The two companies are looking for opportunities not only aimed at Indian market but also outside India."