TaMo, long-time partner Stellantis ink fresh MoU

MUMBAI/CHENNAI: Eight years after a planned alliance with Volkswagen to develop an affordable car for India and other emerging markets fell through, Tata Motors is teaming up with European partner Stellantis to explore manufacturing, engineering, and supply chain collaborations in India and overseas.

The two automakers already operate a two-decade-old joint venture through Fiat India Automobiles (FIA), with the Ranjangaon plant near Pune rolling out Jeep models for Stellantis and Nexon, Altroz, and Curvv for Tata Motors.

The Ranjangaon facility also manufactures engines, transmissions and traction motors for domestic requirements, exporting the surplus to markets such as Japan and South Africa.

Until May 2012, Tata Motors distributed Fiat-branded cars in India through a shared dealer network, after which Stellantis took over distribution operations while manufacturing continued under FIA.

The companies did not disclose details of the proposed collaboration, including whether it would involve a new joint venture, a new range of vehicles or engine-sharing arrangements.

Ashim Sharma, senior partner and business unit head at Nomura Research Institute Consulting & Solutions India said: "Stellantis and Tata have had a long-standing association and have leveraged synergies through that. Given that collaborations are becoming all the more important in the face of megatrends such as power train shift, and software-defined vehicles, it makes all the more sense to continue to expand the relationship built on trust and one that has proven to be beneficial for both partners."

Puneet Gupta, director for India and ASEAN automotive market at S&P Global Mobility said, "The Tata-Stellantis MoU reflects that collaboration is the only way forward in a highly uncertain world. As technology life cycles continue to shorten, partnerships help minimise risk and maximise returns. With India at a critical growth inflection point, the coming together of proven global players can help drive the mobility industry with new and innovative offerings."

The latest development follows Tata Motors' 2025 acquisition of rights from Stellantis to independently develop, update, and recalibrate the 2.0-litre Multijet II diesel engine in its Harrier and Safari models, securing control over a key powertrain.

Since the start of commercial production, the Ranjangaon plant has rolled out more than 1.37 million vehicles and employs close to 5,000 people. The facility has an annual production capacity of over 200,000 units and currently rolls out seven models-four under the Jeep brand and three Tata Motors passenger vehicles. Stellantis' portfolio from the plant includes the Jeep Compass and Meridian, along with CKD versions of the Grand Cherokee and Wrangler.