Tata Motors and Stellantis Sign New MoU to Expand Long-Term Collaboration

Tata Motors and Stellantis Deepen Partnership With New Collaboration Agreement

Tata Motors and Stellantis have taken a fresh step to deepen their long-running partnership in India. The two companies have signed a new Memorandum of Understanding that aims to expand cooperation beyond their current setup.

This agreement is not about one new product or a short-term plan. Instead, it focuses on finding new opportunities across manufacturing, engineering, and supply chain operations in India and select global markets. The move shows that both companies want to work more closely as the auto industry faces rapid change.

A Partnership Built Over Two Decades

The Tata–Stellantis relationship operates through Fiat India Automobiles Private Limited, a 50:50 joint venture that has been active for nearly 20 years. Over this period, the Ranjangaon plant has grown into an important manufacturing base.

So far, the facility has produced more than 1.37 million vehicles and employs close to 5,000 people. It currently has the capacity to manufacture 222,000 vehicles per year, making it one of the more flexible plants in the region.

One Plant, Two Very Different Portfolios

What makes the Ranjangaon facility stand out is its ability to build vehicles for different brands with very different needs. At present, it produces seven models in total.

For Stellantis, the plant manufactures the Jeep Compass and Jeep Meridian, along with locally assembled versions of the Grand Cherokee and Wrangler. On the Tata Motors side, it builds high-volume passenger vehicles such as the Nexon, Altroz, and Curvv.

Running such a mixed product lineup from one location requires strong process control and manufacturing discipline, which FIAPL has developed over time.

Manufacturing Goes Beyond Vehicle Assembly

FIAPL is not limited to assembling cars and also plays an important role in powertrain manufacturing. It produces engines, gearboxes, and traction motors within the same ecosystem.

The plant also supports exports to markets like Japan and South Africa, which shows that it meets international quality and compliance standards. With the new agreement in place, both Tata Motors and Stellantis want to build further on these strengths.

Greater Control Over Key Engine Technology

A major change in the partnership came last year when Tata Motors secured the rights to independently develop and update the 2.0-litre Multijet II diesel engine used in the Harrier and Safari.

This decision gave Tata Motors full control over future upgrades, emission compliance, and performance tuning. The company no longer needs approvals or recurring payments to Stellantis for changes to this engine. This gives Tata more flexibility as emission rules become stricter and customer expectations evolve.

What the New Agreement Signals

The new MoU suggests that both companies see long-term value in working together rather than operating in isolation. For Tata Motors, the partnership provides access to global manufacturing practices and supply chain scale. For Stellantis, India remains a cost-effective and capable base for production and engineering support.

As the industry moves toward cleaner technologies and more complex vehicle platforms, such collaborations can help reduce costs and speed up development.

Leadership View

Commenting on the renewed collaboration, Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles, said the partnership reflects years of trust, shared values, and a common long-term vision. His remarks underline that this relationship is built for the future, not just current needs.

Author's Take 

The latest agreement between Tata Motors and Stellantis may not bring immediate product announcements, but its importance lies in what it enables over time. By strengthening cooperation at FIAPL and expanding its scope, both companies are preparing for an industry that demands flexibility, scale, and faster decision-making.

In the long run, this deeper partnership could play a key role in shaping how both companies operate in India and beyond.