In the first indication that its strategic tie-up with Fiat is crystallising, Tata Motors will display three Fiat India models during the Auto Expo beginning here on Thursday -- Alfa Romeo, Grande Punto and Palio.
Sources in the industry say that Fiat Auto CEO Sergio Marchionne and Tata Motors Chairman Ratan Tata will together unveil the Fiat models on January 13. However, a Tata Motors spokesperson refused to comment.
Since the announcement of the tie-up, both Tata and Fiat have been holding their cards close to their chests.
The display of the Fiat cars at the Tata Motors pavilion indicates that the co-operation between the two companies has reached a definitive stage.
According to the joint Press communiqué issued in September, the two companies had decided to "analyse the feasibility of co-operation across markets in the area of passenger cars that would encompass development, manufacturing, sourcing and distribution of products, aggregates and components."
Following the MoU, a joint team was to be set up by the two companies to determine the feasibility and specificity of the nature of co-operation, both in the short and long term. And, if found feasible, the two companies planned to enter into definitive an agreement.
Earlier, there was speculation that Palio would be produced at Tata Motors' plant in Pune. Industry sources had also said that Palio and Grande Punto could be produced at Fiat India's new plant at Ranjangaon, if Tata Motors invested fresh funds in the facility.
However, it is not clear which variant of Alfa Romeo will be on display at the Auto Expo -- Alfa 156 or Alfa 159. Grande Punto, in dimension, is comparable to the B-Plus segment cars, which are available in the price range of Rs 4 to Rs 650,000. The segment now has Maruti Swift, Hyundai Getz, Ford Fusion and Fiat Palio.
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