Tata Motors ties up with Fiat for Rs 1 lakh car engine technology
Tata Motors has tied up with Fiat to work together on the engine technology for its Rs 1 lakh car. The prototype for the small car is believed to have been made at Tata Motor`s Pune plant. Tata feels that the Italian giant`s expertise and strengths will help smoothen the process.
The Rs 1 lakh car is likely to be launched in the market some time in early 2008 from its production facility in West Bengal. The company plans the target sales of 500,000 in the first year and about a million vehicles by the third year.
Though the MoU between the two companies was signed in July 2006, Tata Motors and its Italian partner are yet to formalise their relationship by forming a joint venture. Sources said the delay could be because the companies are discussing areas where they could collaborate, many of which are not covered in the original MoU.
