Tata Motors, Stellantis Sign MoU for Expanded India Ties

• Tata Motors and Stellantis sign MoU to explore deeper collaboration in manufacturing, engineering, and supply chains
• Ranjangaon plant produces vehicles and powertrains for both, with 222,000 units annual capacity
• MoU aims to optimize shared resources and efficiencies, including potential overseas applications

Tata Motors Passenger Vehicles and Stellantis have signed a memorandum of understanding to investigate possibilities for extending their joint efforts to manufacturing, engineering and supply-chain functions in India.

The agreement marks around 20 years of association between the two automotive groups and builds on their existing 50:50 joint venture, Fiat India Automobiles Pvt. Ltd. (FIAPL).

The joint venture operates an integrated vehicle and powertrain manufacturing facility at Ranjangaon, near Pune, which has been a central pillar of the partnership. Since its establishment, the Fiat India Automobile operation has manufactured more than 1.37 million vehicles.

The plant currently has an installed annual capacity of approximately 222,000 units and provides direct employment to nearly 5,000 people. The facility produces vehicles for both partners, which include Jeep-branded models for Stellantis and multiple passenger vehicles for Tata Motors, while also manufacturing powertrain components.

The companies will use their manufacturing facilities, engineering expertise and supply-chain operations to find ways for better operational performance through their collaborative work established by their MoU agreement.

The team will focus on powertrain and component manufacturing but will use their discoveries to develop operational efficiency in select international markets. The companies have not disclosed their future funding strategies or project schedules, which shows that they are still in the early research phase of their business talks.

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Grégoire Olivier, Chief Operating Officer, Stellantis Asia Pacific stated, “FIAPL demonstrates the strength of long-term collaboration”.

The Ranjangaon facility produces several Jeep models, which include the Compass and Meridian, together with Tata Motors' Nexon, Altroz and Curvv vehicles. The company provides its services to export markets, which include Japan and South Africa.

Automakers around the world have reconsidered their alliances because they need to reduce expenses and increase local production while they deal with unpredictable supply chain challenges. The two organizations will produce their first results after completing their extensive business viability assessments.