Fiat purchasing chief Gianni Coda has outlined a major new strategy to source automotive parts from India which will be worth at least 250 million euros by 2010, up for the current 30 million euros it is spending a year in the country.

Working for a larger car market share and stepping up sourcing of auto parts from India, Italian automobile manufacturer Fiat unfolded its plans to source auto parts worth at least 250 million euro (about Rs. 1,595 crore) from the country by 2010. At present, it is sourcing parts worth 30 million euro from India.

“We will source auto parts worth a minimum of 250 million euro from India by 2010,” Fiat Group purchasing CEO, Gianni Coda, told reporters in India on Wednesday.

Observing that they are already talking to Indian vendors who would need to invest and upgrade their facilities to meet their demand, he said a team of 40 people was busy identifying the vendors for supplying parts for the company’s auto manufacturing plants at Europe, Brazil and North America.

The sourcing of parts from India would give the company two-fold advantage; parts would be about 10-15 per cent cheaper and the company would be able to broad base its global market for sourcing. At present, Fiat buys about 8 billion euro worth of auto parts from markets like Eastern Europe, Northern Africa, South America, India and China and has plans to enhance the purchases to 9.5 billion euro by 2010 from these markets.

Report courtesy of The Economic Times