Fiat and Tata already have a joint venture to distribute commercial vehicles. If they can do the big stuff, why not the little stuff? Tata and Fiat are looking at an agreement to sell the Tata Nano outside of India in markets where Fiat has a strong presence.
If the deal goes through, and once the car is upgraded to meet Western standards, Tata can take advantage of the Fiat name, marketing, and dealer network. Fiat would probably have a big seller on its hands -- and a slice of every one -- since the car is still expected to maintain a healthy price advantage even after it gets beefed up.
The Tata, however, is not expected to come to the U.S. as a Fiat. Ratan Tata said, ""We have held talks about the Nano being marketed in markets where Fiat has already a strong presence." Frankly, America isn't one of those places yet. With Tata making such a big splash over here with Jaguar, they probably wouldn't need Fiat to help the brand. Still, the thought of a Fiat 500 and a Nano snuggling in the corner of a dealership would be too cute to miss.
It was rumored that Nissan/Renault was serious about fielding a low-priced competitor to the $2,500 USD Tata Nano, and the automaker made it official today by announcing a plan to produce an equally inexpensive car called the ULC in conjunction with Indian automaker Bajaj Auto. The two companies are forming a joint-venture to produce the ULC, which will be built at an all-new facility in Chakan, India at an initial rate of 400,000 units per year. The Tata Nano has no need for concern just yet, as the ULC isn't scheduled to go on sale until early 2011 in India and then even later in export countries. We're doubtful that the U.S. is among those export considerations, but parts of Europe will likely see the ULC not long after the Nano arrives in their market.
Tata's cut-price Nano budget car isn't even on the market, and already the Indian automaker is planning its successor. In an interview with German magazine Focus, Tata's Girish Wagh revealed that the second-generation Nano will be developed in four years from now and designed for an assault on the European market.
In order to market in Europe, the next Nano will need to comply with the stringent Euro 5 emissions and safety standards, and Tata will target three liters per 100km, down from the current Nano's already tiny-sipping 5L/km. Before the next Nano is ready for the European market, Tata will focus on its domestic market for two-three years, after which it will look at expanding into Africa, Latin America and Southeast Asia. As we reported earlier, Tata plans to avail itself of Fiat's dealer network in exchange for Jaguar-derived platforms for the upcoming Alfa Romeo 169 sedan.
