The Hindu Business Line : Fiat aims at 90% localisation in 2 years

Ranjangaon, Feb 24 Fiat India hopes to achieve 90 per cent localisation in two years. “In a year’s time we will achieve 60 per cent localisation. We will upgrade it to 90 per cent by 2010,” the President and CEO, Fiat India, Mr Rajeev Kapoor, told Business Line.

About sourcing components from local vendors, he said that Fiat would source 1.3-litre multi-jet diesel engine from Maruti Suzuki, which is produced in its Manesar plant under license from Fiat. The company is also looking at the vendor base of the joint venture partner Tata Motors and is also building up its own vendor base, he added.

Fiat India will not make new models in 2009, as the company’s focus will be on establishing the models, which will have hit the market by then. “Our focus in 2009 will be on consolidation of market. It will take about a year,” Mr Kapoor said.

Palio Diesel

Fiat is launching the diesel variant of Palio on March 11. The homologation process is over and the first batch of the car is ready for the launch. About pricing, Mr Kapoor said that he was looking at the Union Budget before finalising on the cost. If the excise duty is reduced it will have a positive impact on pricing as well, he said.

Palio, which sells 300 models a month, will double its sales following the launch of diesel variant, hopes Mr Kapoor. “Equal numbers should come from both models,” he said.

The company, which started with the production of petrol variant of Palio, will start production of diesel and petrol variants of Palio, Linea and Grande Punto at the upcoming Fiat-Tata plant in Ranjangaon and import Bravo, and 500 from Italy this calendar year. There are plans to introduce Alfa Romeo by December.

Discover drive

Fiat cars Bravo and Fiat 500 are joining Ferrari Magic India Discovery drive, which begins on Monday. “This will be a good brand-building exercise for the Fiat India,” Mr Kapoor said.

Fiat, in its second coming to India, is engaged in installation of production facility, widerange promotional campaign and team building process. “Most of the top team is in place,” said the CEO.