Tata Motors and Fiat are considering a joint investment in India to produce sport utility vehicles (SUVs). According to a report by The Economic Times, the automakers may invest up to INR30 billion (USD468.8 million) in the assembly line, which can produce as many as 100,000 units per annum (upa). "While Tata Motors will look to manufacture its Q501 and Q502 SUVs from the line, Fiat is expected to use it for its Jeep models," said the newspaper, referring to a report by the ET Now television channel. "There are discussions between two companies. These are in the initial stages and details will be shared in the coming period," said a report in Business Standard, citing an unnamed source.
Significance: The report indicates that the investment is likely to be made at either Fiat's Ranjangaon plant or Tata's Pune plant. The Ranjangaon plant already produces Tata's Bolt hatchback and Zest sedan in addition to Fiat's Linea sedan and Punto hatchback. The two automakers ended their sales and distribution joint venture (JV) in 2012 which was established in 2007. However, both parties have continued with the equal-stake engine and vehicle manufacturing venture that has been remarkably successful and operates out of the Ranjangaon plant. According to IHS Automotive production forecasts, Tata is expected to produce its next generation B and C segment SUVs at the Pune plant starting 2016 and Fiat's C segment SUV will probably be produced at the Ranjangaon plant.
