Tata Motors Passenger Vehicles Ltd (TMPV) and Stellantis signed a definitive agreement on Monday to expand their strategic collaboration. This will now include the development of advanced technologies and products, with vehicles created under this agreement being manufactured in India for over 50 global markets.
According to a joint statement from the companies, the agreement merges TMPV's capabilities in vehicle architecture and technology with Stellantis' expertise in global product development and engineering. The cooperation is also aimed at meeting diverse customer requirements, regulatory standards, and operating conditions in international markets.
Under the terms of the contract, TMPV will grant Stellantis access to its product technology and vehicle architecture. Stellantis will utilize these capabilities alongside its product development and engineering operations in India to create cars for overseas markets.
The production of these vehicles will take place at Fiat India Automobiles Private Ltd (FIAPL), a joint venture between TMPV and Stellantis in equal shares (50:50), as announced by the companies.
Agreement Builds on Previous Understanding
This development followed the signing of a Memorandum of Understanding (MoU) in February, which aimed to explore opportunities for cooperation in manufacturing, engineering, and supply chains in India and abroad. The latest agreement formalizes the collaboration in product technologies and vehicle architecture.
The companies noted that the partnership will leverage India's engineering capacity and manufacturing scale to boost exports and strengthen the country's role in their global production network.
Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles, stated that the partnership has been evolving for over two decades. He emphasized that the collaboration with Stellantis has steadily grown due to mutual trust and complementary strengths.
Chandra added that the new agreement will expand relations into advanced automotive technology and architecture, allowing Stellantis to apply TMPV's capabilities to create products for the global market. He expressed delight that Stellantis would utilize these capabilities, noting that together they have a chance to create attractive vehicles designed and manufactured in India for consumers both in India and worldwide.
Stellantis Seeks to Expand Export Potential
Tianshu Xin, Stellantis' Asia-Pacific Regional Operations Director, stated that this agreement combines Tata Motors' capabilities in India with Stellantis' expertise in product development and international market reach. Xin noted that such a combination will help the company create competitive vehicles in India and increase export potential in international markets.
He also stressed that the agreement strengthens India's status as a center for development and manufacturing for Stellantis. Stellantis owns a portfolio of 14 automotive brands and operates in Europe, North America, South America, the Middle East, Africa, and the Asia-Pacific region. The company stated that its global expertise in engineering and markets, combined with Tata Motors' technological capabilities, will support the development and production of vehicles in India for international use.