Fiat’s Punto hatchback, produced in gasoline, diesel and natural gas versions, has been a top-seller for Fiat, accounting for more than 6 million units since its launch in 1993.

The new Grande Punto is designed not to replace the original (which continues on sale), but to extend Fiat’s marketshare in the compact hatchback market by delivering a slightly larger (and more stylish) vehicle.

The facilities are expected to exceed an overall output of 100,000 cars and 250,000 engines and transmissions. Fiat and Tata also announced they have agreed to enter into a 60-day study to explore industrial and commercial cooperation in Latin America.

In particular, the study will be focused on different vehicles especially utility vehicles and pickups and on exploring the opportunity of using the existing Fiat production facilities in Cordoba, Argentina.

Products manufactured there would be sold in various Latin American and overseas markets under both Fiat and Tata brands.

This is the beginning of what promises to be a far-reaching, long term relationship between Fiat Group, Italy, and Tata Motors. Both companies have complementary strengths, convergent objectives and shared values. Together, we can meaningfully address markets in India and other select geographies, combining technologies, products and human skills of both organizations.

—Ratan Tata, Chairman of the Tata Group and Tata Motors