Fiat to invest Rs 4,000 cr

Fiat Auto India, the 50:50 joint venture between Fiat and Tata Motors, announced on Monday that the company will invest Rs 4,000 crore in Ranjangaon over five years. The first stage investments would be around Rs 2,500 crore, of which Rs 1,500 crore would be for the car plant, said Stefan Ketter, senior vice-president of manufacturing at Fiat Group Automobiles, after the formal inauguration of the Ranjangaon facility.

Fiat Auto India MD Giovanni De Filippis said the plant would start production of passenger cars, engines and powertrains around the middle of 2008. The company planned to make 1 lakh cars and 2 lakh engines and powertrains, Filippis said. The firm will produce Stile and new generation cars of Tata Motors' models such as Indica and Indigo, the designs for which are under development, at Ranjangaon.