Tata Motors and Stellantis sign new MOU

Stellantis and Tata Motors' passenger car division today announced the signing of a new Memorandum of Understanding (MoU). The two companies said that the event also marks 20 years of their 50:50 joint venture, Fiat India Automobiles Private Limited (FIAPL).

1. Stellantis and Tata Motors JV complete 20 years in India
2. Both companies jointly own the Ranjangaon plant in Maharashtra

What does the new MoU entail?

While the two brands did not elaborate what the MoU entails, only stating that the aim is to further explore local and global collaborations across manufacturing, engineering and supply chain, we understand that the two companies are exploring an engine sharing partnership.

As we had exclusively reported earlier, we understand Stellantis is exploring the option of using Tata Motors’ 1.5-litre T-GDi engine to power the Jeep Compass, and possibly the Meridian too. With both the Compass and the Meridian being diesel powered only, the Tata engine would give Jeep a new and ready petrol motor from a company it already has a long-standing partnership with.

Incidentally, Tata recently acquired the licensing rights from Stellantis for the in-house development of the 2.0-litre Multijet diesel engine to offer it in different states of tune. Stellantis and Tata Motors also jointly own the Ranjangaon plant, which produces the 2.0-litre Multijet diesel engine – besides the Nexon and Compass – that power the Compass, Meridian, Harrier and Safari SUVs.