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TATA MOTORS Chairman, Ratan N. Tata (left), with the CEO of the FIAT group, Sergio Marchionne.

The most significant takeaway for Tata Motors in its joint venture with Fiat is the part on engine security, so to say. The JV will produce three different engines — a 1.3 litre diesel and 1.4 litre and 1.2 litre petrol engines — which will be fitted on to the forthcoming models of Tata Motors. Through this JV, Tata Motors has crashed the time- frame for its future model launches as it will not have to develop new engines. This is besides the obvious advantage on the investment front. The understanding with Fiat will also help Tata Motors take the Ace to virgin markets abroad, such as Latin America.

BL Research Bureau

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