INDIA BUSINESS WORLD - March 16th - March 31st - 2008
TATA-FIAT JV TO EXPAND PUNE FACILITY
FIAT India Automobiles (FIAPL), a 50:50 joint venture between Fiat Group Automobiles and Tata Motors, has rolled out plans for expanding production capacity and backward integration at its Ranjangaon facility in Pune district.
FIAPL has signed an MoU with the Maharashtra government for an additional investment of Rs 2,341 crore under the expansion plan. This takes the total investment by FIAPL at the Ranjangaon plant to Rs 4,020 crore.
The MoU will be a boost to FIAPL’s plan to launch two B and C segment cars — Grande Punto and Linea — which would roll out from the Ranjangaon plant later this year, said CEO Rajeev Kapoor. By 2012, the capacity of the plant would be expanded to two lakh cars, three lakh diesel engines, and three lakh spare parts and accessories per annum, Mr Kapoor added. At present, the plant has a capacity to produce one lakh cars and two lakh engines.
In addition to premium cars, the plant would also manufacture Fiat’s successful 1.3 litre multijet diesel engines and 1.2 & 1.4 litre fire gasoline engine and the C549 transmission ones. Apart from Fiat cars, the facility would also produce Tata passenger and next generation cars.
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