Global automotive major Stellantis and India’s Tata Motors Passenger Vehicles Limited (TMPV) and its subsidiary Tata Passenger Electric Mobility Limited (TPEM) sealed their MoU signed earlier this year as the two groups on Monday announced the signing of a definitive agreement. This expands the scope of their long-standing partnership further into advanced technology and product collaboration. The collaboration includes manufacturing of passenger vehicles together.
Under the agreement, TMPV will provide Stellantis access to its product technology and vehicle architecture, which Stellantis will build upon through its product development and engineering capabilities in India to address the requirements of more than 50 global markets. Vehicles developed under this agreement will be manufactured in India at Fiat India Automobiles Private Limited (FIAPL), the 50:50 joint venture between TMPV and Stellantis.
Utilising India’s competitive engineering strengths and manufacturing scale, the collaboration aims to accelerate the export ambitions and further anchor India as a key node in the global production network.
Shailesh Chandra, Managing Director & CEO, Tata Motors Passenger Vehicles, said: "This Agreement marks an important next step, extending our relationship into advanced vehicle technology and architecture, reflecting the strength and competitiveness of TMPV’s capabilities in these areas. Together, we have an exciting opportunity to combine our respective strengths to create compelling vehicles engineered and made in India for customers in India and around the world.”
Stellantis has a portfolio of 14 automotive brands, a strong presence across Europe, North America, South America, the Middle East, Africa and Asia-Pacific, and significant global product, engineering and market expertise. In India, the group has brands such as Citroen and Jeep.
Tianshu Xin, Chief Operating Officer, Stellantis Asia-Pacific Region, said: "Partnerships are central to how Stellantis creates value across Asia-Pacific. By combining Tata Motors' strong capabilities in India with Stellantis' global product development and market reach, this Agreement will help us develop competitive vehicles in India and expand our export potential across international markets."
Global automakers are increasingly forming partnerships to share the high costs of developing electric vehicles (EVs), batteries, software and autonomous-driving technologies while gaining access to new markets and manufacturing capabilities. Partnerships also help companies spread risks, achieve economies of scale and compete with Chinese EV makers. In recent years, arch-rivals such as Honda and Nissan, Ford and Volkswagen, and Toyota and Suzuki, have formed partnerships to navigate the challenges and smooth operations.