The MoU encompasses a number of potential developments in engineering, manufacturing, sourcing and distribution of products, aggregates and components.
This will see Iveco and Tata Motors set up a joint steering committee to determine the viability of co-operation, both in the short and long term, with the intention being for both companies to enter into an alliance in the coming months.
Paolo Monferino, chief executive officer of Iveco, said: ‘The possible strategic co-operative agreement with Tata Motors represents a new step in our strategy, leveraging on excellent partnerships established by the Fiat Group across the automotive sector.
We are devoting great efforts and resources to explore this opportunity, as part of our plan to further develop the Iveco brand over the coming years.’
Managing director of Tata Motors, Ravi Kant, added: ‘We are truly excited about the potential this co-operation offers, complementing each other’s strengths in products and across markets.’