The Indian car company Tata Motors and Italy’s Fiat may extend their relationship into engine production, according to local reports.

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The two companies already launched joint dealership operations in India in March and at the time said they were looking at other options.


The country’s Economic Times today (18 July) reported that Tata Motors may now set up a plant to produce Fiat’s 1.3-litre diesel engine, for use in Fiat vehicles in India as well as Tata vehicles.


Though neither party would comment, when Tata and Fiat launched their dealership deal in January, Fiat CEO Sergio Marchionne said: “Our relationship with Tata may extend well beyond the present situation.”


“It is an evolving relationship beyond boundaries”, Tata Group head Ratan Tata added.

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