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Old 11th June 2015, 19:42   #1
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Default Rumour: Tata Motors and Fiat to set up new joint assembly line for SUVs!

In what could be a major advancement for both companies, Tata Motors and Fiat have joined hands to set up a joint assembly line for their respective SUV offerings.

The two car majors will jointly invest about Rs. 3,000 crores in Fiat's Ranjangaon unit, where Fiat already has a 50:50 manufacturing partnership with Tata Motors.

While Tata Motors will utilise the Ranjangaon-based assembly line for it's upcoming Q501 & Q502 SUVs, Fiat will use it for it's Jeep models.

The capacity of the new production line is expected to be around 1 lakh units.

The Ranjangaon facility currently rolls out Tata's Zest sedan and Bolt hatchback, and Fiat's Linea sedan.

Rumour: Tata Motors and Fiat to set up new joint assembly line for SUVs!-1.jpg
(Rendering of the Q501 from Theophiluschin used for representational purposes only)


ET Auto

Last edited by RavenAvi : 11th June 2015 at 22:38.
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Old 12th June 2015, 09:21   #2
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Default Re: Rumour: Tata Motors and Fiat to set up new joint assembly line for SUVs!

Thread moved from the Assembly Line (The "Assembly Line" Forum section) to the Indian Car Scene. Thanks for sharing!
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Old 12th June 2015, 10:30   #3
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Default Re: Rumour: Tata Motors and Fiat to set up new joint assembly line for SUVs!

A couple of days ago, ET reported that several auto majors including Fiat are planning to invest in production. In Fiat's case the figure quoted was Rs 1500-2500 crores, to make luxury SUVs for export purposes. Others including Renault-Nissan and Volkswagen are targeting the export market too. No mention of Tata.
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Old 12th June 2015, 10:46   #4
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Default Re: Rumour: Tata Motors and Fiat to set up new joint assembly line for SUVs!

This is a really good news. Right move in right direction from Tata. Quality of cars rolling out of Fiat plant is better than cars rolling out from Tata Motors itself, its sad but true. I have seen my Uncles new Zest & its a damn good car. Its a quality product inside out. I am sure upcoming products will also be the same.

Guess first product to be manufactured there will be Hexa. It will good for sure. If Tata can manage to price it at par with XUV 500 or little less, then i guess it can get some really good business. Hopefully Tata won't make much changes in what has been displayed as Hexa to us.

One suggestion to Tata, get some good name for Hexa, stay miles away from using name Aria. It already has some bad name, it should not spoil Hexa before it launches.

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Old 12th June 2015, 11:03   #5
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Default Re: Rumour: Tata Motors and Fiat to set up new joint assembly line for SUVs!

Both companies seem to have strategies that are always short visioned. Both have been struggling for quite sometime going back to their short lived partnership in marketing their cars under a common roof, this new strategy is to be looked at with all suspicion.

Looks like its just a matter of time before these two part ways again!
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Old 12th June 2015, 11:23   #6
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There are always lessons learnt in business. If those learnings are taken care and implemented rightly, the output will be definitely stronger and a potential success. Let's wish success to both manufacturers than wishing doom even before the venture fruitifies!
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Old 12th June 2015, 11:59   #7
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Default Re: Rumour: Tata Motors and Fiat to set up new joint assembly line for SUVs!

This is good news for both untill they capture significant market share. This will help in keeping the investments and overheads under control also might result in better utilization of the facility.
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Old 12th June 2015, 12:12   #8
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Default Re: Rumour: Tata Motors and Fiat to set up new joint assembly line for SUVs!

Quote:
Originally Posted by vinair View Post
Both companies seem to have strategies that are always short visioned. Both have been struggling for quite sometime going back to their short lived partnership in marketing their cars under a common roof, this new strategy is to be looked at with all suspicion.

Looks like its just a matter of time before these two part ways again!
Fiat's assembly line is already used by Tata to good effect. This is an extension of that arrangement to the SUV's as well. Since this is a working model, the need for suspicion does not arise.
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Old 12th June 2015, 15:01   #9
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Default Re: Rumour: Tata Motors and Fiat to set up new joint assembly line for SUVs!

The Plant is already a Fiat Tata JV. I guess they are only contributing equally towards an expansion plan. This is the one aspect of their collaboration that was worked well for both.

That said the potential for Fiat sales in India for Jeep Brand products is questionable.
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Old 12th June 2015, 15:22   #10
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Default Re: Rumour: Tata Motors and Fiat to set up new joint assembly line for SUVs!

Very nice & great proposal indeed for such a huge investment.
Tata can utilize the production capacity for upcoming SUVs & LR SUVs, whereas FIAT can utilize it for upcoming Jeep, if talking about SUVs strictly.

BTW, are TATA-Fiat still sharing the Ranjangaon facility for passenger cars? Where TATA earlier used to assemble TATA Manza.

Last edited by GTO : 13th June 2015 at 12:06. Reason: Language
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Old 12th June 2015, 15:40   #11
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Default Re: Rumour: Tata Motors and Fiat to set up new joint assembly line for SUVs!

Quote:
Originally Posted by CRtorquefan View Post
Very nice & great proposal indeed for such a huge investment.
Tata can utilize the production capacity for upcoming SUVs & LR SUVs, whereas FIAT can utilize it for upcoming Jeep, if talking about SUVs strictly.

BTW, are TATA-Fiat still sharing the Ranjangaon facility for passenger cars? Where TATA earlier used to assemble TATA Manza.
Since birth, Manza is being built in Ranjangaon Factory. Now the factory makes Zest and Bolt too.

Last edited by GTO : 13th June 2015 at 12:07. Reason: Quoted post edited
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Old 12th June 2015, 16:48   #12
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Default Re: Rumour: Tata Motors and Fiat to set up new joint assembly line for SUVs!

Man, Hexa is looking hotter and hotter day by day. In that shade, it's just so desirable

This plant was already being shared with Fiat since long isn't it? Only that whatever is being made in there is not setting the charts on fire. And funny that the strategy at both is what's wrong, not the technology.

Hope things turn for the better with 'SUV's. Hexa has the potential, though am not so sure about Jeep. Recently saw all their models on a road show in Germany. Some of them were outright ugly, can't imagine who would drop a couple of millions or more for them in India....
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Old 12th June 2015, 18:56   #13
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Default Re: Rumour: Tata Motors and Fiat to set up new joint assembly line for SUVs!

Quote:
Originally Posted by aniketi View Post
This is a really good news. Right move in right direction from Tata. Quality of cars rolling out of Fiat plant is better than cars rolling out from Tata Motors itself, its sad but true. I have seen my Uncles new Zest & its a damn good car. Its a quality product inside out.
Quote:
Originally Posted by tushky View Post
Since the birth of its life Manza is being built in Ranjangao Factory. Now the factory makes Zest and bolt too.
Zest is manufactured at Tata motors facility along with good old Indicas and Indigos. I do not think Zest is assembled in Tata-Fiat's Ranjangaon, not sure about Bolt.
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Old 12th June 2015, 19:17   #14
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Default Re: Rumour: Tata Motors and Fiat to set up new joint assembly line for SUVs!

Some consolidation is definitely necessary in the Indian auto industry, particularly so because quite a few companies lack the sales needed to justify their presence in the country. Such companies are likely to have a hard time justifying their investments to their shareholders.

Hence we can expect more such joint ventures as the laggards try to improve their bottom lines. Let us hope that we would in this scenario be rewarded with cars developed for the international market.
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Old 12th June 2015, 19:34   #15
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Default Re: Rumour: Tata Motors and Fiat to set up new joint assembly line for SUVs!

Quote:
Originally Posted by Latheesh View Post
Zest is manufactured at Tata motors facility along with good old Indicas and Indigos. I do not think Zest is assembled in Tata-Fiat's Ranjangaon, not sure about Bolt.
I guess Zest gets manufactured in Fiat only. See opening post again, it says "The Ranjangaon facility currently rolls out Tata's Zest sedan and Bolt hatchback, and Fiat's Linea sedan."

Difference in quality is actually visible. Zest looks more premium and better finished product which other cars of Tata don't have.
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