Tata Motors to form venture with Fiat

14 December 2006

Mumbai: Tata Motors will set up a joint venture with Italian auto maker Fiat to manufacture passenger vehicles, engines and transmissions for the Indian and overseas markets.

The proposed joint venture will come up at Ranjangaon in Maharashtra, where the two companies will undertake joint production.

Tata Motors and Fiat had in had in July this year signed a memorandum of understanding (MoU) to establish a joint venture manufacturing unit in India.

Fiat also recently received approval from the foreign investment promotion board to invest Rs2,000 crore in India.

The Ranjangaon facility will have capacity to produce in excess of 100,000 cars and 200,000 engines and transmissions yearly, at steady state. The plant will manufacture vehicles for the Indian and overseas markets.