Tata Motors, Fiat team up to make vehicles

Tata Motors, the country's largest automobile firm, on Wednesday said it was looking to develop a few products jointly with Italian partner Fiat and sell vehicles in various countries.

"We are looking for something for some markets," Tata Motors Managing Director Ravi Kant told reporters in New Delhi when asked whether the two companies were planning to develop some products jointly.

He, however, did not elaborate, saying this was "too premature to talk about it". Both the partners were working on different projects at the moment, he added.

Tata Motors and Fiat Group Automobiles SPA had in October last year formed a 50:50 industrial joint venture. When asked whether Tata Motors would leverage from its partner's global distribution presence, Kant said: "We are actively pursuing some opportunities outside India." The company is discussing certain geographies of the world for distribution of products, he said.

The joint venture is developing a manufacturing facility at Ranjangaon in Maharashtra at an investment of Rs 4,000 crore (Rs 40 billion). The facility, which is expected to go upstream by May this year, would have a capacity to produce 1,00,000 cars and 2,00,000 engines and transmission system. Apart from the Fiat branded car, the plant would also manufacture the next generation Tata cars and provide engine and transmission to its Indian partner. Kant said as part of JV agreement about 65 dealers of Tata Motors have already started selling Fiat brands.

The dealership network will be expanded as the company plans to spread out its portfolio, Kant said, adding these dealers would also offer after-sales service to Fiat customers.

Currently, the Tata dealership is selling Fiat Palio, which is being produced at the Ranjangoan facility. Fiat plans to introduce four new models during the current year.

The company is planning to roll out 'Fiat 500' and 'Bravo' as completely built units from Italy in the next three months. Two other models - 'Grande Punto' and 'Linea' - would be launched in the third quarter of 2008-09.