Fiat India Automobiles (FIAPL), a 50:50 joint venture between Fiat Group Automobiles SpA and Tata Motors, is planning to expand its production capacity and backward integration at its Ranjangaon facility in Pune district.

On 24 March 2008, FIAPL signed a Memorandum of Understanding with the Maharashtra government for an additional investment of Rs.2,341 crore under the expansion plan.

The company will be launching two B and C segment cars - Grande Punto and Linea - which is likely to roll out from the Ranjangaon plant by end 2008. By 2012, the capacity of the plant will be expanded to two lakh cars, three lakh diesel engines, and three lakh spare parts and accessories per annum. At present, the plant has a capacity to produce one lakh cars and two lakh engines.

In addition to premium cars, the plant will also manufacture Fiat's successful 1.3 litre multijet diesel engines and 1.2 & 1.4 litre fire gasoline engine and the C549 transmission engines. Apart from Fiat cars, the facility will also produce Tata passenger and next generation cars.

Also See:

Fiat, Tatas to be equal partners in joint venture (28-Feb-08)