Tata Motors-Stellantis ink an MoU: What's on the agenda?
What's the story
Tata Motors Passenger Vehicles and global automotive giant Stellantis have signed a memorandum of understanding (MoU) to explore further collaboration. The companies will look at opportunities in manufacturing, engineering, as well as supply chain operations in India and beyond. The move also marks the 20th anniversary of their joint venture, Fiat India Automobiles Private Limited (FIAPL).
Joint venture
FIAPL operates a shared manufacturing plant at Ranjangaon
FIAPL operates a shared manufacturing plant at Ranjangaon, near Pune. The facility employs almost 5,000 people and has an annual production capacity of about 222,000 vehicles. Since its inception, it has manufactured over 1.37 million vehicles. The new MoU builds on these established capabilities but specific projects under the agreement have not been disclosed yet.
Collaboration
Stellantis and Tata Motors are looking at engine sharing
According to people familiar with the matter, Stellantis and Tata Motors are looking at engine sharing for future products. This could see Tata Motors' 1.5-liter T-GDi petrol engine being used in some Jeep models. Further, Tata Motors has also secured licensing rights from Stellantis for the in-house development of the 2.0-liter Multijet diesel mill in different states of tune.
Partnership
What did Stellantis say?
Gregoire Olivier, Chief Operating Officer of Stellantis Asia Pacific, stressed the importance of long-term partnerships in a joint release. He said, "FIAPL stands as a testament to what two strong organizations can achieve together." The statement highlights the potential for future-ready manufacturing and sustainable growth through this renewed collaboration between Tata Motors and Stellantis.