Fiat reportedly intends to expand the production capacity of a plant it operates in India together with Tata, according to industry sources.

According to the website, the joint venture Fiat India Automobiles will pump some USD1bn into the plant in Ranjangaon, in the state of Maharashtra, which produces cars, motors and transmissions for both Fiat and Tata.

Fiat said it will use the Indian plant to produce its Linea and Grande Punto models, while Tata has not said what it intends to produce there, although it has excluded making the Nano in Ranjangaon, which will be made elsewhere.