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Tata Motors, Fiat eyes more cooperation
By agencies
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Tuesday, 07 March 2006, 20:30 IST
MUMBAI: Tata Motors Ltd said it was exploring areas of cooperation with Italy's Fiat apart from joint dealerships to help gain an edge in an increasingly competitive market.
The area of interest includes co-production, co-development and sharing of technologies, as well as replication of the model in overseas markets, an official said. Tata Motors, Senior Vice-President, Rajiv Dube said, Discussions are on to explore other areas of cooperation, for which the feasibility is being established.
Fiat has also said it may source auto components from India, as the group tries to pull back from its worst-ever crisis by launching new models, through alliances with other car makers and production in low-cost countries.
A joint dealership was launched, which will have 44 outlets in the country. More dealerships will be added as other areas of cooperation are firmed up. The two companies had agreed in January to share dealer networks in India, which would help deliver cost savings.
Dube said, We are looking to establish quick gains, though it is too early to quantify what the cost savings will be. The joint dealership network, which covers 11 Indian cities, already addresses 70 percent of the market that Fiat is present in, said Giovanni de Filippis, managing director of Fiat India. "This is just a first step towards further cooperation," he added.
Fiat has a plant in Kurla, a Mumbai suburb, with an installed capacity of 60,000 cars a year and a second plant in Ranjangaon, also in Maharashtra. Activation of the plant will depend on whether a ramp-up in production is required, Filippis said.