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Stellantis and Tata Motors Mark 20 Years With New MoU to Broaden Collaboration

The pact signals a push to use their Ranjangaon joint venture as a wider manufacturing and powertrain hub.

Overview

  • The non-detailed memorandum of understanding will explore new opportunities across manufacturing, engineering and supply chains in India and select global markets.
  • Industry reporting indicates the partners are evaluating an engine-sharing arrangement, including Tata’s 1.5‑litre T‑GDi petrol for Jeep Compass and possibly Meridian, though no deal has been announced.
  • FIAPL’s Ranjangaon facility has produced over 1.37 million vehicles, employs close to 5,000 people and has capacity of about 222,000 units, with seven models currently built and exports to markets such as Japan and South Africa.
  • Tata Motors secured licensing rights in 2025 to independently develop and recalibrate the 2.0‑litre Multijet II diesel used in Harrier and Safari, giving the company greater control over a key powertrain.
  • Executives from both companies emphasized future‑ready manufacturing, innovation and sustainable growth, as analysts cite powertrain transitions and faster tech cycles as drivers for deeper partnerships.