What’s interesting is, Tata Motors itself has two cars that compete in the segments - the Indica hatchback and the Indigo sedan.
MUMBAI: Tata Motors Ltd, India’s biggest truck and bus maker, and Fiat Auto SpA, Italy’s largest manufacturer, will invest Rs 4,000 crore to make the Fiat Linea sedan and the Grande Punto hatchback in India.
What’s interesting is, Tata Motors itself has two cars that compete in the segments - the Indica hatchback and the Indigo sedan.
Would be very interesting to see how the new vehicles are marketed.
An analyst said the Linea and the Punto will have premium pricing as a differentiator, to take on the Getz-es and the Honda Citys and Hyundai Vernas.
They expect the Linea to sell around Rs 7.5 lakh, while they see the Grande Punto at around Rs 5.5 lakh. Both cars will roll out in 2008 — around the same time the Mahindra Renault combo unrolls the fantastically roomy Logan sedan in the Rs 5-6 lakh range.
The Fiat Linea (Linea means line in Italian, Punto is point) is the sedan avatar of the Punto, set for rollout across the world in the second half of 2007.
So that’s a spanking new European model.
The Linea was designed by the creator of the Mini, Frank Stephenson, at the Centro Stile Fiat, or the Fiat Style Centre in Italy.
It has a trunk capacity of 500 litres, is 4.56 metres long, 1.73 metres wide and 1.5 metres high, with a 2.6 metre wheelbase.
Both the cars will be made at Fiat’s facility in Ranjangaon near Pune, which is expected to churn out 1 lakh cars and two lakh engines annually.
Today’s agreement followed a preliminary accord signed between Tata and Fiat in July to form the equal joint venture for the local and overseas markets.
Fiat formed an alliance with Tata in January to market its cars through Tata’s dealerships.
Fiat now sells the Palio hatchback and the Petra sedan in India, producing it at the Kurla plant.
Tata is also exploring the possibility of cooperating with Fiat in Latin America, the companies said.
The current alliance with Fiat will help Tata to source technology and designs for competing with companies such as Suzuki Motor Corp and Hyundai Motor Corp in India, where only seven in 1,000 people own a car.
Three out of four cars sold in India are hatchbacks. Around half the car market is controlled by Maruti, a unit of Suzuki, as it produces five hatchback models, which are more efficient and cost less than sedans. (With Bloomberg)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}