Fiat could no longer use Tata Motors’ distribution network in India after they ended their distribution pact. In a joint statement, they said that a separate Fiat-owned company will now handle the distribution activities. Last February, Tata’s CFO C.R. Ramakrishnan said that its joint venture with Fiat wasn’t meeting the anticipated financial results or sales.
Since 2006, Tata Motors had been running the distribution of Fiat-branded vehicles in India with the use of 178 joint Tata-Fiat dealerships. Its dealers spread out in 129 cities will be urged to be a part of the foundation of Fiat's future network. In addition, the joint venture of Fiat and Tata includes the joint production of cars, engines and transmissions in Ranjangaon in the State of Maharashra.
Fiat had been assembling the Punto subcompact and Linea compact models at the plant since 2008. In the statement, it was also clarified that the production joint venture will continue to supply cars and powertrains to both Fiat and Tata.