Tata Motors-Fiat JV to set up INR 3,000 cr SUV facility

Tata Motors-Fiat JV SUV assembly facility would be used to make former’s upcoming Q501/Q502 SUV twins and latter’s Jeep range. An early report by ET Now indicates that new facility will have an annual production capacity of 1 lakh units.

Jeep Grand Cherokee India
Fiat Chrysler will use the new SUV facility to assemble Jeep range while Tata Motors will build Q501 and Q502.

SUV assembly line is expected to come up at the existing 50:50 JV plant at Ranjangaon where Tata Zest, Bolt, Fiat Linea, Punto and Avventura are made. The expansion would make it one of the largest passenger vehicle factories in the country.

Though Tata and Fiat split their distribution and dealership JV a couple of years ago, there exists a partnership when it comes to manufacturing and powertrain sharing (Fiat 1.3-litre MultiJet is used by multiple Tata products). In addition to setting up SUV facility, the duo is also expected to enhance their engine sharing agreement by including the 2.0-litre MultiJet diesel engine as well. Tata’s Q501 and Q502 premium SUVs with JLR inputs are rumored to adopt the bigger oil burner.

Time frame for Tata Motors-Fiat JV SUV assembly line to go on stream is unclear as of now but considering a launch target of 2017 for Tata SUV duo, we can expect the infrastructure to be ready by then.

Via – EconomicTimes.com