Fiat Punto: Tata Motors and Fiat might jointly manufacture small cars and engines

The latest rumors in the auto market is that Indian company Tata Motors is working on plans to jointly produce small cars and engines with Italian auto giants Fiat.

This could become the first of many such deals between the two companies after they signed on an alliance last year.

This report was revealed in the market by UK daily Financial Times, which cited information received from people involved in the proceedings.

The deal would be beneficial for Tata as they are currently somewhat struggling to compete in their domestic market in India with both Hyundai and Maruti planning to launch diesel versions of their small car in the coming months.

The two companies could be involved in the joint production of Fiat’s Punto model. The two companies can co-develop this model at Fiat-owned factory in Ranjangaon, in western India.

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