Tata Motors Passenger Vehicles and Stellantis sign MoU, mark 20 years of India factory partnership

Tata Motors Passenger Vehicles and Stellantis, on Tuesday, signed a memorandum of understanding to explore further collaboration. The companies said they will study opportunities across manufacturing, engineering and supply chain operations in India and international markets.The announcement also marks 20 years of their 50:50 joint venture, Fiat India Automobiles Private Limited (FIAPL). The venture operates a shared manufacturing plant at Ranjangaon, near Pune.

Grégoire Olivier, Chief Operating Officer of Stellantis Asia Pacific, said, “FIAPL stands as a testament to what two strong organisations can achieve together. As we commemorate this milestone, we remain focused on evolving the partnership to support future-ready manufacturing, innovation, and sustainable growth in the region.”
FIAPL employs nearly 5,000 people and has an annual production capacity of about 222,000 vehicles. Since its inception, it has manufactured more than 1.37 million vehicles.Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles, said, “Our partnership with Stellantis through FIAPL reflects the strength of a long-standing collaboration built on trust, shared values and a common vision. We look forward to deepening this relationship with Stellantis in the years ahead.”

Over two decades, the venture has developed capabilities in manufacturing, powertrain development and supply-chain management. The Ranjangaon facility also produces engines and other key components, and supports exports to markets including Japan and South Africa.

The new MoU builds on these established capabilities. The companies did not disclose specific projects under the agreement.

People familiar with the matter said the companies are examining the possibility of engine sharing for future products. This includes the potential use of Tata Motors’ 1.5-litre T-GDi petrol engine in select Jeep models.

Tata Motors has also acquired licensing rights from Stellantis for in-house development of the 2.0-litre Multijet diesel engine in different states of tune. That engine is produced at Ranjangaon and is used in vehicles from both groups.