Fiat and Tata Motors plan to sell the Indian manufacturer’s low-cost Nano model jointly in Latin America.

The Indian firm’s chief Ratan Tata, who is also a Fiat director, told La Stampa newspaper the two companies are studying further cooperation to add to existing projects such as a partnership to produce engines in India.

He added: “We have various projects, to take the Nano to Latin America together, to share platforms for new cars, we also have projects for Iveco and also for us to sell Ferrari and Maserati.”

The first Nano, the world’s cheapest car at INR100,000 (US$2,053) excluding taxes, was delivered this month after production issues – a forced relocation of an almost-finished plant due to land seizure issues – pushed back the launch some six months behind schedule. Tata said the car’s production run for the next two years is already sold.

The Nano passed the European crash test safety standard last week and European launch is expected at the end of 2011.