April 02, 2007 | Business Standard
Fiat, Tata Motors inaugurate Pune plant
Fiat Auto India — the 50:50 joint venture between Fiat and Tata Motors — today announced an investment of Rs4,000 crore (660 million euro) at its Ranjangaon plant over the next five years.
The first stage of investment will be of around Rs2,500 crore (470 million euro) out of which Rs1,500 crore (250 million euro) will be for the car plant, Stefan Ketter, senior vice-president of manufacturing at Fiat Group Automobiles, said after the formal inauguration of the Ranjangaon facility.
Giovanni De Filippis, managing director, Fiat Auto India said the plant will start production of passanger cars, engines and power trains around the middle of 2008. The company has planned to make 1,00,000 cars and 2,00,000 engines and power trains, Filippis added.
Ravi Kant, managing director, Tata Motors, said the joint venture is a long-term relationship and all business opportunities will be exploited by the company. This may include supply of diesel engines to Tata Motors or Fiat marketing Tata Motors' cars — especially the low cost car under development — in markets such as Latin America.