Fiat India Automobiles Ltd., the Indian subsidiary of the Italian Fiat Group Automobiles that operates under a joint venture with Tata Motors for the sales and service of Fiat vehicles in the country have pronounced the dissolution of their joint venture.
Fiat India has been advantageously penetrating into the diverse Indian auto market with the effective distribution system of the country’s third largest automaker, Tata Motors. In a move to initiate the long term growth and stability plans and to concentrate greater on the brand Fiat, the auto giants have jointly decided to delegate Fiat India’s distribution and service responsibility to a dedicated Fiat Group owned company so as to abstain the currently utilized joint Tata-Fiat dealerships.
A new company formed for this purpose by Fiat Group in India will sequentially embark upon development and effective expansion of the Fiat India sales and service outlets and assistance will be sought from the existing 178 Fiat-Tata joint dealerships dispersed in over 129 cities.
The joint venture was announced in the year 2006 that commenced the production activities of Fiat and Tata vehicles along with the manufacturing of engines and transmissions for the domestic and overseas market at the Ranjangaon facility in Maharashtra. The five year old JV has attained a production level of around 1,90,000 cars and 3,37,000 powertrain at this plant and has recently signed an agreement with the country’s largest automaker, Maruti Suzuki for the supply of small diesel engines.
