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Stellantis and Tata have penned down a new Memorandum of Understanding which focusses on expanding their collaboration beyond current operations
Stellantis and Tata Motors Passenger Vehicles have celebrated 20 years of working together by signing a new Memorandum of Understanding which focusses on expanding their collaboration beyond current operations. The agreement seeks to identify new opportunities across manufacturing, engineering and supply chain functions in India as well as select global markets.
The partnership operates through Fiat India Automobiles Private Limited (FIAPL), a 50:50 joint venture that has steadily grown into a key manufacturing hub over the past two decades. Since its formation, FIAPL has produced more than 1.37 million vehicles and currently employs close to 5,000 people. The facility has an annual production capacity of 222,000 units.
At present, the Ranjangaon plant manufactures seven models in total – four under the Jeep brand and three Tata Motors passenger vehicles. The Stellantis lineup includes the Jeep Compass and Meridian along with CKD versions of the Grand Cherokee and Wrangler. Tata Motors models produced at the facility include the best-selling Nexon, Altroz and Curvv.
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In addition to vehicle assembly, FIAPL also plays a significant role in powertrain manufacturing. The plant produces engines, transmissions and traction motors in-house and supplies vehicles to international markets such as Japan and South Africa. With the new MoU in place, both automakers are looking to build on FIAPL’s established strengths.
Commenting on the association, Shailesh Chandra, Managing Director & CEO, Tata Motors Passenger Vehicles, added: “Our partnership with Stellantis through FIAPL reflects the strength of a long-standing collaboration built on trust, shared values and a common vision. We look forward to deepening this relationship with Stellantis in the years ahead.”
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Last year, Tata Motors secured the rights from Stellantis to independently develop, update and recalibrate the 2.0-litre Multijet II diesel engine that powers the Harrier and Safari – giving the company far greater control over one of its most important powertrains. The agreement allows Tata to make changes for future emission regulations, performance upgrades and multiple state-of-tune options without seeking approvals or paying recurring fees to Stellantis.
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