Italian carmaker Fiat and Indian carmaker Tata Motors will invest some 350 million euro (455 million US dollars) in a plant in central India to jointly produce the Fiat Punto model, the Italian News Agency ANSA said Friday.

The two companies plan to produce 100,000 cars and 250,000 diesel engines yearly in the plant.

The plant has been closed for six years. The first Fiat Punto produced in India is expected to be ready in December 2007 or in the beginning of 2008.

According to ANSA, the projects were presented by representatives of the two companies at a meeting with Vilasrao Deshmukh, Chief Minister of the state Maharasthra where the plant is located.

Maharasthra is expected to account for 30 percent of the national car output in the future thanks also to the investments of the United States carmaker General Motors in the zone.

Source: Xinhua