Tata, Fiat to share dealers

The company is also likely to utilise Fiat’s excess manufacturing capacity in India. ‘‘Ours is a no-holds barred open-ended relationship and there is no target that we cannot achieve. We have not discussed issues like joint R&D and our dealerships being used by Tata worldwide, but such a possibility cannot be ruled out,’’ said CEO Fiat Group Sergio Marchionne.

Also speaking at the joint conference at Auto Expo, Ratan Tata, chairman of the Tata Group, said, ‘‘We hope this is the start of a long-term relationship which will result in more strategic alliances across various markets.’’ He added that the groundwork for the agreement was done when the two companies signed a Memorandum of Understanding (MoU) in September 2005.

Post March 2006, Tata Motors will manage the marketing and distribution of the Fiat branded cars in India and dealers will display the new Fiat logo alongside the Tata logo at their outlets.

Earlier, the two companies jointly unveiled their cars at the Auto Expo. Tata Motors launched a long wheel base version of Indigo and a reconfigured version of Indica — the Indica V2 Xeta — which is equipped with a 1.4 litre engine. Tata has brought in a crossover concept vehicle the X-over.

Fiat unveiled the Grand Punto, which was launched in September 2005 in the European markets, and the Alfa Romeo 8C competizione concept car. Though Fiat is intent on diversifying its product portfolio in India, it has ruled out any launches this year.