Tata Motors and Stellantis sign MoU to extend collaboration

Indian automaker, Tata Motors and Stellantis, a multinational automotive manufacturing corporation, have completed 20 years of partnership in their 50:50 joint venture, which is Fiat India Automobiles (FIAPL). Not only that, but both entities have signed a Memorandum of Understanding (MoU) to explore further opportunities for collaboration across manufacturing, engineering and supply chain in India and overseas.

Speaking on the milestone and the opportunity ahead, Grégoire Olivier, chief operating officer, Stellantis- Asia Pacific, said, “FIAPL stands as a testament to what two strong organisations can achieve together. As we commemorate this milestone, we remain focused on evolving the partnership to support future-ready manufacturing, innovation, and sustainable growth in the region."

Joint Venture Development

The joint venture of Stellantis and Tata Motors has developed strength across verticals, including manufacturing, powertrain and supply chain, leveraging Stellantis’ knowledge of global markets and Tata Motors’ local capabilities.

Shailesh Chandra, managing director and CEO, Tata Motors, 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.

Tata Motors and Stellantis Partnership

Interestingly, Tata Motors recently acquired the licensing rights for the in-house development of the 2.0L Multijet II turbocharged diesel engine, which powers the Compass, Meridian, Harrier and Safari, in order to offer the engine in different tunes. Under the partnership, more than 1.37 million vehicles have been produced since the beginning of the partnership.

Moreover, four Jeep and three Tata Motors vehicles are currently produced at the FIAPL Ranjangaon plant. The 50:50 joint venture employs almost 5,000 people and produces 2.22 lakh vehicles per year. Furthermore, the Nexon and Compass are also produced at the Ranjangaon plant.

Jeep's New Roadmap for India

This comes on the back of Jeep’s new roadmap for India called ‘Strategic Plan Jeep 2.0’ wherein the American automaker, under Stellantis’ leadership, is reaffirming a long-term commitment despite having a slim portfolio in India. The plan places India at the centre of its Asia-Pacific (APAC) operations. Not only that, but India will continue to play a dual role as a domestic market as well as an export base.