Fiat Auto has set itself a target of grabbing 5 percent of the rapidly-growing Russian new car market by 2010, through its new joint-venture operation with Severstal Auto, a figure that will equate to around 80,000 units.

The targets, revealed by the Russian Radicor news agency, will see sales grow from 2,400 vehicles this year and a projected 36,500 units in 2007. The majority of these sales will be made up of B-segment passenger cars and light commercial vehicles. The mix will involve the Palio and Siena models (which will commence assembly at Severstal's Kamaz plant this autumn) and the Ducato (set to be assembled at Elabunga in 2007) - both built from CKD kits - coupled to a range of Fiat branded models that will be imported and sold through a new dealer network, including the Panda, Grande Punto and Croma.

The imported Fiat models' retail prices will be set above the average of its rivals - the Grande Punto's price starts at $15,700 while a Ford Motor Company Focus model starts at $12,200, reported the Dow Jones Newswires. However Shvetsov said that his company will try to compensate by attractive credit programs and a $12 million-a-year advertising budget. Prices of locally made Fiats, he said, "will come as a nice surprise." Fiat's brand manager Luca De Meo said he was confident that Russia will soon become one the world's most important car markets, not only by volume but also for defining trends.
 

And, "presenting a new model in Moscow and St. Petersburg will be a must," he said. "That's why our partnership with Severstal-Avto is a great asset to us." Separately, De Meo told Dow Jones Newswires that his company "hopes to start making a profit in Europe as soon as possible," which is now especially likely with the help of new Bravo and Cinquecento models. He said that for 2006 Fiat is targets a 22% to 23% market share in Italy and a 6% share in all of Europe. The company's market share in Europe including models Lancia and Alfa Romeo should reach 7.9% to 8.0%, he said.

Fiat plans to re-launch sales of Alfa Romeo in Russia next year, added the Dow Jones Newswires report. They had been halted due to poor marketing and sales. It's also thinking of introducing Lancia, vice president for business development Alfredo Altavilla, said, adding that Fiat and Severstal-Avto continue talks on other forms of cooperation, such as joint component production and trucks.