Tatas to expand alliance with Fiat
Business Standard — March 7, 2006

Tata Motors today said it is looking at more areas of cooperation with Italy's Fiat, besides their joint dealership initiative. The joint dealership network, which was formally announced today, will sell Tata and Fiat cars along with sales and service of accessories in 11 cities across the country. Apart from jointly selling cars, the alliance is also exploring the possibilities of co-production, sharing of technologies, as well as the overseas marketing of the models by the respective companies, said senior officials of the companies.

Fiat is also looking at sourcing auto components from the Tata group and other Indian companies. "Discussions are on to explore other areas of cooperation, for which the feasibility is being established," said Rajiv Dube, senior vice-president of Tata Motors. "The coming together of Tata and Fiat through the dealer network-sharing signifies better service, after-sales support and more convenience to Fiat customers," said Giovanni de Filippis, managing director, Fiat India.

The Tata-Fiat dealer network comprises 25 existing Tata Motors passenger vehicle dealers and three existing Fiat India dealers. Starting from today, Tata Fiat dealers will sell the Fiat Palio (1.2 EL PS, 1.2 ELX, 1.6 Sports) and the Fiat Adventure (1.6 Sports), and all Tata Motors passenger cars - the Tata Indica, the Tata Indigo, the Tata Indigo Marina, the Tata Sumo and the Tata Safari. The 28 Tata-Fiat dealers, who together have 44 outlets located in 11 cities - Mumbai, Pune, Ahmedabad, Delhi, Chandigarh, Ludhiana, Bangalore, Chennai, Hyderabad, Kochi and Kolkata.

These will address 70 per cent of the market Fiat has in the country, Filippis said. Operations of the Tata-Fiat dealer network kick off following the announcement made by the two companies on the agreement to cooperatively share the network on January 13.