The Hindu Business Line : Fiat launching Linea, Grande Punto soon

The Fiat India Vice-Chairman, Mr Alfredo Altavilla, told newspersons on Wednesday that the Fiat-Tata Motors joint venture will manufacture both Linea and Grande Punto at its Ranjangaon plant in India while the Fiat 500 (Cinquecento) and the Bravo will be imported as CBUs. Fiat 500 will be sold through direct marketing, he said.

“This year will see Fiat commence the build up of the re-establishment of the brand in India,” Mr Altavilla said. He said the new launches will be supported with the increase in Tata-Fiat dealership network to more than 100 in a few years. He also said Fiat may look at introducing CNG engines in India by 2009. He said the company expects to sell about 70,000 units of its fiat models by 2010.

Fiat is also planning to bring Ferrari later this year as part of an event, Mr Altavilla said. “We will make an important announcement regarding Ferrari later this year,” he said. He said Fiat will introduce its internationally successful cars in India constituting a product mix of cars manufactured locally and imported CBUs. “We plan to develop India into one of our leading markets in sync with Fiat’s international image — as a leading maker of premium and stylish cars,” he said.

The joint venture has earmarked an investment of Rs 4,000 crore from both partners for its Ranjangaon plant.

The plant is expected to produce 1 lakh cars and about 2 lakh engines and transmissions. The engine and transmission production will later be increased to about 3.5 lakh units. Apart from Fiat branded cars, the plant will also manufacture Tata cars. The Palio 1.3 multijet diesel car produced in this plant will be launched in March this year.

Fiat India’s Chief Executive Officer, Mr Rajeev Kapoor, said Linea will have about 50 per cent local content initially which will be later increased to 90 per cent by 2009.

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