Tata Motors joint venture Fiat India signed a deal to supply 2.2 lakh diesel engines to both Tata and Maruti Motors. The deal shall be valid for three years.
Currently, Maruti Suzuki has been selling its Dzire, Ignis and Ciaz based on the 1.3 liter multijet engine supplied by Fiat India @1.5 lakh units/3 years. Now the volume shall go high. It will also supply 70 thousand units of 2.0 liter multijet engine to its parent Tata Motors which shall be fitted in all the SUVs it is venturing on. The engines shall be produced at Ranjangaon plant, Pune. This outsourcing of units from distinct producers shall reduce the huge cost investment of the companies on their own and will share produces and services to create a better outflow in the market.
After engines sharing, the companies might share the platforms on which the cars are built as well, for instance Tata recently signed an MoU with Volkswagen to share their vehicular platforms.
“We will continue to offer our expertise in the Indian automobile industry with the 2.0-liter multijet diesel engine as we move into our new growth chapter in this important market," the spokesperson of Fiat said.
