Fiat and Tata to manufacture and sell Palio and Siena in India

The collaboration between Tata and Fiat might show some results in the near future. An internal source has claimed that Fiat would now be manufacturing their models Fiat Palio and Fiat Siena in India with Tata Motors. And these would now be sold through Tata’s own dealer network around the country.

Fiat Chief Executive Officer Sergio Marchionne is expected to showcase some of their new designs along with Tata Motors Chairman Ratan Tata at a ceremony later this week. More details should come out in that presentation. The invitations were sent to media personals on email and the companies are not exactly revealing many details on their future plans.

Fiat is looking at cutting costs at their operations around the world. India has not been a hunting ground for Fiat where they have faced numerous problems with dealership and customer responses. As a result, some of the most exciting cars in the compact segment in the world are looked upon with suspense here in the Indian market. Support from Tata would do them much good.

Tata would gain technical advancements from Fiat in return which would benefit their own automobile operations in the country. Both the groups as a result would be in a much better condition to face the competition from Japanese and South Korean automakers like Maruti Suzuki, Hyundai, Honda, and Toyota.