Indian automobile firm Tata Motors and Italian automaker Fiat have ended their distribution pact, clipping their six-year sales relationship.
Following the deal, Italian car maker will take full control of sales, marketing and service activities by setting up a standalone distribution company, in a bid to revive its struggling Indian operations.
The two firms will further continue their joint venture Fiat India Automobiles which manufactures Fiat and Tata cars, their engines and transmissions at a facility at Rajangaon in western India.
Fiat, whose brands include Fiat, Alfa Romeo and Maserati, currently produces cars, including Punto and Linea in India with Tata Motors.
The Italian automaker has reported a 24% decline in sales in Q1 of 2012 to 16,073 cars, when compared to the same period the previous year.
Following the refurbishment, Fiat will begin building its own dealerships network across the country.
