The Hindu Business Line : Tata Motors' manufacturing tie-up with Fiat

The two companies have signed an agreement for setting up a joint venture for the manufacture of passenger vehicles, engines and transmissions. Both automakers are expected to share the setting up of the proposed greenfield Ranjangaon facility in Maharashtra.

When completed, the output at this facility is expected to reach one lakh cars and 2.5 lakh engines and transmissions. Fiat and Tata Motors have also entered into an agreement to explore industrial and commercial cooperation in Latin America.

The two companies will explore opportunities for the manufacture of different vehicles at Fiat's existing facilities in Cordoba, Argentina. Fiat also plans to introduce two new cars in the `B' and `C' segments in the Indian market.

Sub-Rs 7 lakh Fiesta Diesel

Competition, it appears, is hotting up in the diesel segment. Ford has launched the base version of the Ford Fiesta Diesel Exi. The car, which carries a price tag of Rs 6.85 lakh (ex-showroom Kochi), would be among the first diesel sedans with CRDi technology in the sub-Rs 7 lakh segment. The base model will not have features such as foldable rear seats, music system and body-coloured side rear-view mirrors.

Bout of price hikes

Rising prices of key raw materials such as steel, aluminium and synthetic and natural rubber appear to have sparked a round of price hikes by automobile manufacturers. Close on the heels of a price hike by Hyundai, market leader Maruti is to come out with the details of its price raise any time now. Bajaj Auto, which during the month raised prices of some of its models, plans to hike the price of the Pulsar.

DaimlerChrysler plans new offering

DaimlerChrysler plans to launch the high-end Mercedes Benz E 350 in India. The company plans to import about 40 Avant Garde units of the E class variant.

Alagappan Arunachalam