Tata Motors Passenger Vehicles and Stellantis have signed a memorandum of understanding (MoU) to explore deeper collaboration across manufacturing, engineering and supply-chain operations, marking two decades of partnership between the two automakers in India.

The MoU builds on their long-standing 50:50 joint venture, Fiat India Automobiles Pvt. Ltd. (FIAPL), which operates an integrated vehicle and powertrain manufacturing facility at Ranjangaon near Pune. The companies did not disclose specific timelines or investment commitments, indicating that discussions remain at an exploratory stage.

Ranjangaon facility central to partnership

FIAPL has produced more than 1.37 million vehicles since the partnership began. The Ranjangaon plant currently has an annual production capacity of around 222,000 units and employs close to 5,000 people.

The facility manufactures vehicles for both partners, including Jeep models for Stellantis and passenger vehicles for Tata Motors, and houses powertrain and component manufacturing capabilities.

Scope includes manufacturing, engineering and supply chain

According to the press release issued by the companies, the MoU will focus on evaluating opportunities to share manufacturing infrastructure, engineering resources and supply-chain efficiencies in India, with potential applications in overseas markets as well. Powertrain and component manufacturing are among the areas under consideration.

“FIAPL demonstrates the strength of long-term collaboration,” said Grégoire Olivier, Chief Operating Officer, Stellantis Asia Pacific.

Notably, the Ranjangaon facility currently produces four Jeep models, including the Compass and Meridian, along with Tata Motors’ Nexon, Altroz and Curvv. The plant also exports vehicles to select international markets such as Japan and South Africa.

Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles, said the partnership has evolved steadily and that both companies would assess avenues to deepen cooperation.

Exploratory move amid global manufacturing reset

The MoU comes at a time when global automakers are re-evaluating manufacturing partnerships to manage costs, improve localisation and address supply-chain volatility. For Tata Motors and Stellantis, the agreement signals continuity in a partnership that has already navigated multiple product cycles and regulatory changes.

Any concrete outcomes from the MoU are expected only after detailed feasibility assessments by both sides.