Casting frantically around for ways to stem its falling sales Fiat Automobiles India has turned to one of the Italian carmaker's most favoured traditional methods of shifting cars - discounting, with a new special offer that will see diesel models priced the same as petrol versions this month.

The new marketing initiative, dubbed Diesel at the price of petrol will be rolled out throughout this month and hopes to attract customers who otherwise would have put off the decision to buy a diesel car due to the initial cost. This initiatives is expected to make it easier for customers to own the Punto or Linea, which in diesel format may also offer greater long term value, as well as cheaper running costs, than petrol models.

Fiat will provide car buyers with a chance to own a Fiat diesel Linea or Punto at the price of the petrol variant or with the equivalent cash back. In addition to this upgrade offer which a few will also win every week, many winners will also qualify for fuel vouchers for a full one year’s supply of petrol or diesel. On top of this all buyers of Fiat cars in July will be provided free fuel for three months in addition to discounts on the first year's insurance and free 50 months road side assistance. Customers exchanging their old cars to upgrade to a Linea or Punto will get an additional exchange bonus of up to Rs.20,000.

Speaking about the initiative, Mr. Rajeev Kapoor, the President and CEO of Fiat India said, "Across the world, diesel technology has evolved and diesel cars are no longer considered inferior to petrol cars. With the rise in petrol prices, diesel cars make for an even more attractive proposition and Fiat has been leading the diesel revolution across the world and even in India. The multitudes of cars which sport Fiat’s multijet engines are a testimony to this fact. With Diesel at the price of Petrol we plan to help more car owners have the joy of owning a Fiat diesel."

Diesel at the price of petrol is the latest in a line of customer initiatives by Fiat India designed to turnaround its falling sales. Fiat First introduced last year was an industry leading customer service programme. From making spare parts available at competitive rates to making its presence felt with 175 dealer outlets Fiat India was trying to reach out to its target audience.

There has been no let up in Fiat's falling position in the highly promising Indian market. For the month just gone, June, Fiat India sold only 1,506 cars which was well down from 2,137 units in June 2010, while for the cumulative year Fiat is on 5,703 units versus 6,100 for the corresponding previous period.

Fiat has also re-jigged its contingent of directors this week in Fiat India, which is a 50-50 joint venture with Tata Motors. Fiat has five directors, half, on the board. Giovanni Bartoli and Harald J Wester have left the board this week to be replaced by Gianni Coda and Alessandro G Baldi. Meanwhile senior executives at joint venture partner Tata Motors have become increasingly publically critical of Fiat's approach to Fiat India.