BUSINESS

Tata Motors to market Fiat cars



Staff Reporter

Tatas unveil first Indian limousine and a concept car `X-over'



NEW DELHI: Italy's Fiat on Friday signed an agreement with Indian automobile major Tata Motors to share the latter's strong dealership network across the country to sell its cars.

In return, Tata Motors will have access to the Fiat group's technology besides marketing network overseas.

From March, some select Fiat cars along with service and sale of spare parts will be available at the Tata dealership network. The agreement is the result of the joint activity started after the MoU between the two companies in September 2005.

"Two big automakers have come together looking at opportunities not confined to India but spreading to other places of the world. It will be a long-term relationship and several strategic alliances will be announced in future," Tata Group Chairman Ratan Tata said in the presence of Fiat SpA CEO Sergio Marchionne at the ongoing Eighth Auto Expo here.

According to Mr. Marchionne, this alliance would not only help them make inroads in newer markets and increase their customer base, but also provide superior service and facilities to their existing customers.

"I am confident that this association will expand in the areas of product development, manufacturing and sourcing," he added.

Meanwhile, at the expo, Mr. Tata unveiled the first Indian limousine and a concept car called "X-over". The company also launched a reconfigured entry-level petrol car "Indica V2 Xeta" that is equipped with a 1.4 litre engine and whose different variants are priced between Rs.2.69 lakhs and Rs.3.65 lakhs.

Tata Motors has also decided to hike the prices of its passenger cars mainly owing to increase in input costs.

The rise is likely to be between Rs. 1,500 and Rs.11,000, depending on the model and will come into effect from January 15.



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