Tata and Fiat are reportedly looking to extend their manufacturing joint-venture (JV), reports Business Standard, citing unnamed sources. The automakers are understood to be working on Fiat Chrysler Automobile (FCA)'s 2.0-litre diesel engine, which will likely power two of Tata's sport utility vehicles (SUVs) and FCA's new compact SUV, to be launched under Jeep. "This new engine is key to continuance of the partnership between Tata and Fiat, as it has big benefits for both. Till date, Tata Motors has sourced technologies such as the 1.3-litre multijet diesel engine and gear boxes from Fiat," said a source close to the development. The three models are expected to launch in 2017, said the report. Spokespersons for both companies declined comment on the matter when contacted by the newspaper.
Significance: Tata is believed to be working on two SUVs with its Jaguar Land Rover (JLR) unit. The latest report adds that Tata plans to use the 2.0-litre engine in the new SUVs. However, we believe Tata's SUVs are scheduled to be introduced in 2016. In addition, Tata is expected to introduce its Nexon compact crossover, first showcased at last year's New Delhi Auto Expo, in 2016. Similarly, our production data reveal a C-segment Jeep SUV is scheduled for 2016. Despite ending their sales and distribution JV in 2011, Tata and Fiat have continued their equal stake manufacturing JV at Ranjangaon, Pune, in Maharashtra. The JV produces vehicles and engines for both automakers.
