Tata Motors, which has recently formed a joint venture with Fiat Auto in India, has decided to use the Tata brand name for entry-level cars, reports Financial Express. Fiat will be the chosen brand name for the middle-to-premium-end of each segment. The decision will take the JV a step forward and consolidate the auto major’s presence in the whole range of the domestic passenger cars market.

“In the times to come, Fiat will look at the premium- and high-end segments and Tata will be at the entry level,” Ravi Kant, managing director, Tata Motors, told Financial Express. “Tata Motors is constantly weighing its options of leveraging its existing ties with its joint venture partners. We are currently in talks with our partner to explore some of the products from the Fiat fold that can be brought to India,” said Kant.

"This will allow Tata Motors to have a complete product portfolio in passenger cars without investing phenomenally in technology and product development capabilities,” said an analyst. The Tata Indica, the first indigenously designed and manufactured car, was a stepping stone for Tata Motors’s presence in the passenger car segment.
 

The company has since expanded its passenger car portfolio to the Indigo (sedan), the Indigo Marina (station wagon) and the Indigo XL, a long wheel-base version of the Indigo. After launching the Fiat Palio Stile, the Indian auto major will also introduce Fiat’s Grande Punto in the compact B range and the Linea for the mid-size C range.

Fiat, along with Tata Motors, plans to invest Rs 4,000 crore over 3-4 years in the joint venture in a phased manner. With capacities to produce in excess of one lakh cars and two lakh engines and Transmission units annually, the Ranjangaon plant near Pune will make vehicles for the Indian and overseas markets. Both Fiat and Tata vehicles will be made at the facility, which will be managed by the two partners. The joint venture will also have two divisions — cars and engines, and transmission units.

report courtesy of Financial Express