14.12.2009 FIAT INDIA TARGETS DOUBLING OF SALES NEXT YEAR

FIAT LINEA 1.3 MULTIJET

Fiat India, which has been boosted this year by the reception two key new models, the Linea (above) and Grande Punto, has revealed that it expects to end the year with around 23,000 sales and next year it is ambitiously targeting doubling this number.

Fiat India, which has been boosted this year by the reception two key new models, the Linea and Grande Punto, has revealed that it expects to end the year with around 23,000 sales and next year it is ambitiously targeting doubling this number. Fiat India Automobiles is a 50-50 split joint venture with Tata Motors and Fiat Group Automobiles and operates a state-of-the-art production facility at Ranjangaon in Pune where all three of its models are assembled.

"Next year, we are planning to double this year's numbers. We hope to end the current year with around 23,000 Fiat-branded vehicles," Fiat India Automobiles CEO Rajeev Kapoor said yesterday, adding that the company has sold 20,000 cars so far this year.

Born out of the ashes of Fiat's last unsuccessful foray into India, Fiat India Automobiles operates the former Fiat factory at Ranjangaon in Pune. This state-of-the-art facility has the capacity to produce 200,000 vehicles per year, as well as engines and transmissions. The Linea started to roll off the Ranjangaon production lines at the beginning of the year to strong local market acclaim, pushing forward Fiat India's rebirth, and it has been joined this summer by the Grande Punto in 5-door format, which also looks set for a strong future in India. The factory is expected to build cars for Tata Motors as well as future Fiat models and recently it was announced that the R&D headcount would be doubled. Fiat India has plans to develop its own models and is currently evaluating ambitious projects including breaking into the growing 600cc market segment.

Kapoor believes that the passenger car market in India will see double digit growth next year and he foresees than new versions of the existing range, including a bigger engine for the Linea, can push sales through the 50,000 barrier next year. Fiat India is also aggressively targeting exports of it model production, with the Linea and Palio already being shipped to South Africa, and it is also aiming to push the range into its adjoining markets. "We are working on neighbouring countries like Nepal and Bhutan," said Kapoor. "We are already in discussion with the dealers in these countries."

This export drive perfectly fits with the strategy of the Fiat Group which has long eyed making India one of its major global manufacturing hubs, and with its Ranjangaon factory now producing the Grande Punto and Linea as well as the Palio, all of which feature very high levels of local component content it has the core of models to fulfil these ambitions. With Fiat's repeated failure to tap into the explosive growth being seen in the Chinese new car market, India represents a key global growth market. Last year Fiat India exported just 800 cars, all of which were the B-segment Palio hatchback and shipped to South Africa.

Kapoor also narrowed the India launch date of the new low cost B-segment "Uno" to the second half of 2011. Previously he has said it would arrive sometime in 2011. This car is being engineered primarily by Fiat Automóveis in Brazil with design in conjunction with Fiat Centro Stile in Turin and its 'upright' styling theme takes its key cues primarily from the Fiat Panda as well as drawing on the acclaimed looks of the Grande Punto. Fiat India's Ranjangaon factory will be one of several global manufacturing hubs scheduled to turn out this new model as the Italian carmaker prepares the ground for a second "Project World Car" family to replace the ageing Palio hatchback and its series of derivatives. The current Palio is also built in Ranjangaon and sold across India, and features a recent local-market specific facelift. As well as Brazilian and Indian production locations, the new "Uno" is proposed for the Zastava factory in Serbia.
 

© 2009 Interfuture Media/Italiaspeed