Tata Considering Entry into China

India's Tata Motors and Italian auto giant Fiat have agreed to form a joint venture to create and establish a new auto plant in Ranjangaon, India. Tata Motors is India's largest automobile company and is its leader in commercial vehicles and second in passenger vehicles.
The new plant will be designed to build in excess of 100,000 cars and 200,000 engines annually for the Indian market and export. Both Fiat and Tata brand vehicles will be manufactured at the Ranjangaon plant with Fiat introducing its Grande Punto and new Linea ranges to the Indian market.

Engines to be built in the plant include the Fiat 1.3L multi-jet diesel engine plus Fiat 1.2L and 1.4L petrol engines. Investment in the joint venture may exceed US$869,000 with production slated to being in 2008.

Tata has recently expressed a desire to enter the Chinese market but admits it would need a manufacturing presence there due to the entry policy provisions.

During my recent trip to India I became very familiar with the site of Tata trucks, customised with Christmas lights, beads and incredible paint jobs, rumbling up and down the highways dodging cows and rickshaws. It doesn't surprise me at all to find that Tata has over four million vehicles on Indian roads.

[Source: GreenCarCongress]

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