Tata Motors and Stellantis may expand their long-standing partnership to include hybrid powertrains and lightweight engineering after signing a new memorandum of understanding (MoU).
According to a report by Fortune India citing sources, the collaboration could move beyond traditional powertrain development to focus on technologies aligned with upcoming corporate average fuel efficiency (CAFE) Phase III requirements.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The potential scope of cooperation includes development of engines compliant with CAFE Phase III norms as well as hybrid powertrain systems.
The companies may also consider emissions pooling and initiatives aimed at reducing the weight of engines and battery components.
CAFE standards require automakers to achieve minimum average fuel efficiency across their vehicle fleets to curb fuel consumption and lower emissions.
The new MoU builds on the companies’ existing collaboration through Fiat India Automobiles (FIAPL).
Since beginning operations in 2007, the joint venture has produced more than 1.37 million vehicles at its Ranjangaon manufacturing facility in Maharashtra.
Over the years, the Ranjangaon plant has developed into an important manufacturing and export hub supplying vehicles and powertrains for domestic as well as international markets.
The facility has produced vehicles not only for Tata Motors but also for brands within the Stellantis group, which includes Jeep, Chrysler, Citroën, Fiat and Peugeot.
It has also functioned as an export base for engines and components, supporting Stellantis’ global supply chain.
The report noted that the integrated operations at the plant provide a foundation for expanding collaboration under the MoU into next-generation engines, hybrid technologies and lightweight engineering solutions.
India’s CAFE Phase III norms are expected to take effect from FY27.
The framework will impose tighter fleet-wide CO₂ emission targets through weight-based efficiency standards, prompting manufacturers to adopt electrified powertrains, hybrid systems and vehicle lightweighting to meet fleet-average CO₂ benchmarks.
The rules also permit emissions pooling, allowing multiple manufacturers to combine fleet performance to comply with regulatory targets.
