Fiat Auto and Tata Motors are set to reveal the blueprint of their new joint venture along with details of the cars they plan to build together, during the 8th New Delhi Auto Expo - Asia's biggest motor show - which will open its doors tomorrow, reports The Times of India. Last September Fiat Auto and Tata Motors announced that they had signed a Memorandum of Understanding that would see them set up a committee to explore the feasibility of developing and building passenger cars together for both the Indian and Asian market.

"The feasibility study has been completed and the Tata-Fiat combine is now close to inking an alliance to jointly develop cars. The firm will take the covers off their joint product development plans at the Auto Expo," a source close to the deal told The Times of India newspaper this week. Fiat CEO Sergio Marchionne and Tata Group Chairman Ratan Tata, will together unveil their product plans for the future, the source added. A Tata Motors spokesperson, when contacted by the newspaper refused to comment, but sources pointed out that the car maker is also planning to showcase around four cars, which it plans to build jointly with Fiat in India.

With a population of over one billion and an economic growth which is running at 7 pct per annum, India is rapidly becoming one of the global hubs of business. The automotive sector is one of the core industries of the Indian economy, whose prospects are reflective of the economic resilience of the country. With a 4 pct contribution to the GDP, and accounting for nearly 5 pct of the total industrial output, the automotive sector has become a significant contributor to the Indian exchequer.
 

Continuous economic liberalisation over the last few years by the governments of India has resulted in turning the country into one of the prime business destination for many global automotive players. India can now claim to be the largest two-wheeled vehicle manufacturer in the world, and is a home to the biggest motorbike maker. It is also now the second largest tractor manufacturer in the world, the fifth largest commercial vehicle builder is the fourth largest carmarker with over one million cars sold in 2004-05.

The New Delhi based Auto Expo show - now into its 8th edition - has become the glittering showcase of the Indian automobile and auto-component industry over the last 18 years. Each Auto Expo has revealed to the world, the rapid developments in the industry and has been the launching-pad for many new vehicles as well as new technology components.

For Tata Motors the Auto Expo is their biggest public event of the year and after several years of trying to carve out a global position, they seem to have struck it in their deal with Fiat. Though details of the new cars that will be part of the alliance are not yet available, sources pointed out to The Times of India that the two firms have shortlisted the compact and mid-sized car segments as the primary target market for their joint development plans.