Fiat Auto is teaming up with India’s largest motor manufacturer Tata. The alliance is intended to give both firms access to new markets. Bosses from the two car makers announced, at a motor show in the Indian capital, New Delhi, that they plan to share technologies and designs. From March, Fiats will be sold through Tata’s extensive showroom network in India. Fiat’s chief executive, Sergio Marchionne, said: “What I can tell you is that I think we probably have the best lead ship team to run the organisation.”
The chairman of the Indian company, Ratan Tata, told reporters: “There is a wonderful opportunity to leverage the volumes that both out companies can generate in India and we will undertake whatever we need to do in the most cost effective and in the best possible manner for quality.”
Fiat has a long history in India, but its sales there have now fallen to just 0.2%. Maruti, which is owned by Suzuki, has 46% of the market, Tata has 16.5%, that is less than the South Korean company Hyundai with 17.3%. Both Suzuki and Hyundai are investing heavily to expand in India. The alliance with Fiat should give Tata new designs to compete with them. India is one of the world’s fastest growing car markets as a result of rising incomes and cheap loans.