Fiat India JV with Tata Motors to Build Global Vehicles
Stellantis and Tata Motors have signed a definitive agreement to co-develop and manufacture vehicles in India for export to over 50 global markets, expanding their two-decade partnership into advanced vehicle technology.
Fiat India Automobiles Private Limited, a 50:50 joint venture between Tata Motors and Stellantis, will manufacture vehicles for over 50 global markets. The agreement leverages Tata's proprietary vehicle platform architecture and Stellantis' engineering expertise, marking a strategic shift from powertrain collaboration to full vehicle development for international export.
The definitive agreement, signed on Monday, October 12, 2026, converts a non-binding memorandum of understanding from February of the same year into a binding contract. The partnership, which has lasted more than two decades, now aims to accelerate exports and strengthen India’s position in the global automotive production network. Stellantis will adapt the developed models to local regulatory and customer requirements across its worldwide markets.
Expanded manufacturing and export capabilities
The vehicles will be built at the integrated FIAPL facility in Ranjangaon, Pune, Maharashtra. This plant already produces a range of models for both partners and will now serve as an international export hub. Production will be exported to more than 50 global markets, including Japan and South Africa.
The Ranjangaon facility currently manufactures Stellantis and Tata models, alongside engines, transmissions, and traction motors. The site produces the following vehicles:
Strategic expansion of long-term partnership
The agreement expands the long-term partnership between Tata Motors Passenger Vehicles Limited, its subsidiary Tata Passenger Electric Mobility Limited, and Stellantis. It focuses on advanced vehicle technology and product development. Shailesh Chandra, managing director and CEO of Tata Motors Passenger Vehicles, stated this marks an important next step for the companies in that domain.
Tianshu Xin, chief operating officer of Stellantis for the Asia-Pacific Region, said the pact combines Tata's India capabilities with Stellantis' global reach to develop competitive vehicles and expand exports. He added that it reinforces India's role as a strategic manufacturing and development hub.
Market impact and operational goals
The expansion enhances long-term revenue visibility and operational efficiency at the Ranjangaon joint venture facility. Puneet Gupta, director of Mobility Global, noted that sharing platforms will help reduce costs and increase export volumes for both companies. Domestic auto ancillary suppliers tied to the production platforms of both automakers stand to gain from the increased production volumes.
Stellantis has invested over €1 billion in India and aims to ramp up production at the facility from 16,000 units annually to over 43,000 units by 2028. The collaboration reduces capital expenditures by spreading platform development costs over international market volumes and validates Tata Motors' technological capabilities on a global stage. Stellantis brings a portfolio of 14 automotive brands to the partnership, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, FIAT, Jeep, Lancia, Maserati, Opel, Peugeot, Ram, and Vauxhall.
Key risks to the partnership include execution timelines for platform adaptation across more than 50 jurisdictions, potential macroeconomic slowdowns, changes to trade tariffs, and supply chain bottlenecks. The joint venture will serve as an international export hub for vehicles manufactured in India to more than 50 global markets.
