Tata Group Chairman Ratan Tata on Friday described the deal with Italy's Fiat Group under which Tata dealers will sell Fiat cars an 'evolving relationship with no barriers or boundaries'.
Tata said the deal would not only provide the company access to Fiat's technology but could also see the two share platforms in the future.
Under the deal, while Tata Motors will sell Fiat cars from March, Fiat will give Tata access to technology and marketing support overseas.
"The two big companies have come together looking at opportunities not confined to India but spreading to other places of the world," Tata said after signing the deal with Fiat SpA CEO Sergio Marchionne at the Auto Expo in Delhi.
"There are enormous opportunities... We can have access to products, components and technology from a world class company," he said, adding that they could use Fiat's marketing network in Europe to push Tata products in the region.
Company executives, however, refused to discuss the financial implication of the deal. Tata Motors' Managing Director Ravi Kant said the deal was between the two companies and could not be discussed.
Marchionne said the Tata-Fiat team was doing an 'excellent job'.
"I am confident that our co-operation with Tatas will expand to product development, manufacturing and sourcing." he said.
The Fiat CEO admitted that his company was going through a bad patch in India and said the agreement with the Tatas was a 'recognition of the fact that we do need to do work in this market'.
"Tata Motors is the producer of valuable products in this market. We go forward with their help," he said.
Asked if Fiat would outsource its excess production capacity in India to Tata Motors, Marchionne said there were "no immediate plans on this front."
He said the company was planning to expand its portfolio in the Indian market but had no proposal to launch any model this year.
"It would happen at an appropriate time," he said.
About Fiat's existing dealers in India, Marchionne said they would continue to be there though each one of them would be assessed.
