August 22, 2008

TATA Motors and Fiat JV to invest INR 2,341 crore in Pune

It is reported that Fiat India Automobiles Limited, a 50:50 JV between Fiat Group Automobiles SpA and TATA Motors, has rolled out plans for expanding production capacity and backward integration at its Ranjangaon facility in Pune district. It has also signed a MoU with the Maharashtra government for an additional investment of INR 2,341 crore under the expansion plan.

Mr Vilasrao Deshmukh chief minister of Maharashtra, while addressing the MoU signing ceremony, said that this takes the total investment by Fiat India at the Ranjangaon plant to INR 4,020 crore. With this, the total committed investment that the state has fetched in the past 2 years comes to INR 119,000 crore in 95 mega projects.

Mr Rajeev Kapoor CEO of Fiat India said that the MoU will be a boost to its plan to launch two B and C segment cars namely Grande Punto and Linea, which would roll out from the Ranjangaon plant later in 2008. He added that "By 2012, the capacity of the plant would be expanded to 200,000 cars, 300,000 diesel engines and 300,000 spare parts and accessories per annum. At present, the plant has a capacity to produce 100,000 cars and 200,000 engines.

In addition to premium cars, the plant would also manufacture Fiat’s successful 1.3 liter multi jet diesel engines and 1.2 & 1.4 liter fire gasoline engine and the C549 transmission ones.