MUMBAI (Reuters) - A joint venture of Italy’s Fiat and India’s Tata Motors said on Monday it will sign a preliminary understanding with Maharashtra to expand capacity at its plant in western India.
Fiat India Automobiles, which sells the Palio hatchback in India, has a plant in Ranjangaon with a capacity to make 100,000 cars and 200,000 engines and transmissions.
The company has said the agreement will be signed at 2:30 p.m. on Monday at a function in Mumbai. No other details were available.
Fiat has said it plans to launch four models in India in 2008/09 (April-March), including the Linea and Fiat 500.