[Omkar]

Fiat India Automobiles, a joint venture company between Fiat Group Automobiles S.p.A. (now known as Stellantis Europe S.p.A.) and Tata Motors Limited, reported a remarkable 20.48% surge in net profit, amounting to Rs 759 crore during year ending March 2023.

As per corporate filings sourced from Tofler, a data analytics firm, Fiat India Automobiles, achieved a significant milestone by rolling out 1 million cars from its production line. Among these, 500,000 units were the popular Tata Nexon model. The Tata Nexon, a flagship model for Fiat India Automobiles, experienced an exceptional YoY (year on year) sales growth of about 40%. This included 29,800 units of the Tata Nexon EV, showcasing the increasing demand for electric vehicles in the market.

The domestic sales experienced a remarkable YoY increase of approximately 39%, with 194,265 vehicles sold in various variants. However, exports to right-hand drive (RHD) markets worldwide saw a decrease of about 7% YoY, with 5,314 vehicles shipped.

In the engine segment, Fiat India Automobiles reported a significant boost in its engine segment, selling 318,001 units of engine units, marking a YoY increase of approximately 42%. This growth stemmed from engine and traction motor supplies to leading automotive manufacturers such as Tata Motors and MG Motors.

However, despite its impressive financial performance, the company's board decided not to recommend any dividend for the year. This strategic decision aims to preserve resources until the automobile industry stabilises, reflecting the uncertainties facing the auto market going forward.

Source: Autocar Professional

[SmartCat]

While all other car manufacturers are investing thousands of crores and shedding blood & tears to gain marketshare, Fiat India be like:

[rsidd]

I had no idea that Nexon was a flagship model for Fiat India Automobiles! But indeed, why sell your own cars (be it Fiat, Jeep, Citroën which is now under the same umbrella) when you can just make them for others. Or engines. I thought that business was collapsed after BS6 came in and Maruti discontinued diesel; apparently not.

[motorworks]

Pardon my ignorance, but i always that the Ranjangaon plant was jointly owned by Fiat and Tata, and there was nothing more to this partnership ( apart from Fiat supplying diesel engines to Tata, but that is at a cost, i assume)

As an entity, is “fiat india” a 50:50 JV between Tata and Fiat? And even then how can Fiat claim anything to do with something like a Nexon? Is it just because the nexon is being made in the Ranjangaon plant?

And why is there nothing mentioned about Jeep as a company here in this article? Does this so called Fiat India JV exclude Jeep? With all the speculation that Jeep may walk away from India, it would be good to understand the whole structure between Fiat and Tata ( i’m a little more anxious having bought a compass just a year ago).

[saikishor]

How is the Nexon even related to Fiat? I thought it was indigenously developed and was a total Tata product. Am I missing something? I thought Fiat only supplied engines for the Harrier and Safari.

[SmartCat]

Originally Posted by motorworks

how can Fiat claim anything to do with something like a Nexon? Is it just because the nexon is being made in the Ranjangaon plant?

Fiat India is a contract manufacturer for Tata Motors. At their Ranjangaon plant, they assemble/manufacture Nexon & its engine/transmission components. But it is not an 100% exclusive arrangement. Meaning:

a) Tata Motors manufactures their cars elsewhere too.
b) Fiat India has other businesses too (Jeep business, engine/transmission for other vehicles etc)

As an entity, is “fiat india” a 50:50 JV between Tata and Fiat?

Not sure if it is 50:50, but Tata Motors has a shareholding in Fiat India. Over time, they have changed what Fiat India will do in India. We don't know if it has resulted in change in shareholding pattern (for eg: introduction of jeep brand into India)

And why is there nothing mentioned about Jeep as a company here in this article? Does this so called Fiat India JV exclude Jeep? With all the speculation that Jeep may walk away from India, it would be good to understand the whole structure between Fiat and Tata

From the Autocar Professional article (source):

During the same period, Fiat India Automobiles commenced production of the Jeep Meridian, catering to domestic and export markets, including developed regions like Japan and Australia. Additionally, the company introduced the production of the Jeep Grand Cherokee, further expanding its product portfolio.

[benvsben]

Thanks for sharing but, this is very depressing. I am going through a lot of pain unable to maintain my sister's Fiat Punto, just because of FIAT's attitude to ditch customers like us and glorify new customers for Jeep. There are two most dreadful things... one, I own a FIAT... two, I live in Pondicherry. It is highly depressing when I know there is no experienced hand in my location to fix this car. I have to take this to WoS Chennai for a positive experience.

I cannot sell it either because I am audacious or highly optimistic that I will be able to fix this car, myself. Some day.

It is an absolute disgust to see FIAT taking podium stands for leaving a mob of customers, defenseless. I know, it comes to "the choices we make".

Originally Posted by saikishor

How is the Nexon even related to Fiat? I thought it was indigenously developed and was a total Tata product. Am I missing something? I thought Fiat only supplied engines for the Harrier and Safari.

Oh! I did not know FIAT is still supplying engines to Tata.

[Nithesh_M]

Hmm so if Fiat manufactures the Nexon does it still get the vocal 4 local stickers on the windshield? I thought the whole point of that sticker was to support indigenous companies keep cash flow inside India? Or atleast that's what the fans of such movement once claimed even though running through Zauba you will see these manufacturers importing more and more items from China for Assembly here.

[greyhound82]

Originally Posted by SmartCat

a) Tata Motors manufactures their cars elsewhere too

Not sure if it is 50:50, but Tata Motors has a shareholding in Fiat India.

As per this Autocar article, it is a 50:50 joint venture. https://www.autocarpro.in/news/rajes...--113668?amp=1
From the article :

The Fiat India plant is being predominantly used by Tata Motors for Nexon SUV production (around 160,000 units) and accounts for between 75-80% of the plant’s output. About 20,000 to 25,000 Jeep products are also produced at this facility.

During my startup days, I remember most of the part assembly supplied to JEEP compass for both export and domestic were coming from Tata Autocomp (TACO). The Ranjangaon JV factory was much better when compared to Chinchwad plant with respect to equipment and process

[SmartCat]

Originally Posted by Nithesh_M

Hmm so if Fiat manufactures the Nexon does it still get the vocal 4 local stickers on the windshield?

No surprise, but that is marketing gimmick. All mainstream car makers in India are "local" companies, if you broaden the definition of the word.

I thought the whole point of that sticker was to support indigenous companies keep cash flow inside India?

Most foreign automobiles continue to pour in investments into India. This is natural in relatively high growth markets like India. For example: if Toyota India made Rs. 1,000 cr profits last year and accumulated profits are Rs. 5,000 cr, then it makes sense for the company to invest this surplus into expansion, rather than withdrawing it.

Toyota plans third India plant, new SUV as domestic sales surge
https://www.reuters.com/business/aut...es-2023-09-27/

But sure, they might be some cash flows moving out in the form of dividends or royalty payments (as R&D work is done by parent company). But then, Tata Motors/Mahindra does R&D work outside India too via their subsidiaries. Engine development by Tata/Mahindra is done in consultation with foreign companies like AVL.

Or atleast that's what the fans of such movement once claimed even though running through Zauba you will see these manufacturers importing more and more items from China for Assembly here.

Tata/Mahindra too import components from everywhere. That's just normal supply chain at play here.

- Auto component imports are around $20 billion per year.
- From China, we import around $6 to $7 billion per year.

But this is fine because India exports auto components worth $20 billion a year.

[wheeledwanderer]

My cousin just bought a Nexon EV and understand from him that battery and majority of its associated components come from China. So if this was the case why vocal for local was my thought too!

[Sargent_dallas]

I haven't gone through the whole article, but from the gist of the post, my two cents are. I used to work for a Tier-1 OEM manufacturer based out of Japan, and we supplied Ignition systems for Stellantis, Ford, Toyota, TATA, etc. The way it used to work is each company has its requirements, they provide everything, and we manufacture and ship them with their branding. Few companies required us to manufacture locally rather than importing from low manufacturing hubs. We can get the raw materials elsewhere, but the manufacturing and final assembly should occur in the same country. When Tata said vocal for local, they meant all the components should be manufactured locally and be supplied to the company production line. Here, Fiat India might be playing the same safe game by being a supplier and manufacturing partner and supporting the Nexon production line rather than being a fully pledged automobile manufacturer.

[BleueNinja]

Originally Posted by benvsben

oh! I did not know FIAT is still supplying engines to Tata.

The multijet diesel engine has been important for few manufacturers from quite sometime.

Earlier the 1.3 Multijet engine was used by Maruti, Tata and Chevrolet but post BS6 emission norms FCA didn't work on the engine and it was discontinued.

Now Harrier/Safari and Hector are using the 2.0 Engine apart from Compass to carry out diesel duty.

IMO Mahindra really deserves all the appreciation for coming up with M-hawk and M-stallion on their own which are potent and capable engines.

[safari_lover]

Fiat India, which is essentially the Ranjangaon plant, is owned equally by Tata and Stellantis. Both use it to manufacture their products. Tata used it to manufacture the Vista and Manza to begin with and now uses it for Nexon. The upcoming Curvv may also be manufactured here as it is supposed to be based on the Nexon platform. This doesn't mean Fiat has anything to do with Nexon technically.

As this is a separate company it has to show its own profit and loss. Tata Motors' lists it under its subsidiaries in its quarterly results reports. Currently it is making profits as the plant is getting utilized optimally thanks to the Nexon.

This is same as how Maruti and Suzuki operated their business via the Gujarat plant which was owned by Suzuki directly and made cars for Maruti Suzuki India.