Tata nod crucial to Maruti-Fiat diesel engine agreement

MSIL, India’s biggest car maker, said it was in advanced talks with Fiat to ink a diesel engine sourcing contract that would allow it to rapidly increase diesel model supplies into the market.

Fiat India Automobiles, the equal joint venture (JV) between Italy’s Fiat Group Automobile SpA and Tata Motors, owns an Rs 4,500-crore engine and transmission plant at Ranjangaon in Pune. It has a 10-member board, with five nominees each from Tata Motors and Fiat. It manufactures 1.3-litre multi-jet diesel engines, which Maruti Suzuki is eyeing to procure.

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