The Hindu Business Line : Fiat India looking at multiple fuel options

Mumbai, Nov. 26 Fiat India Automobile (Fial), which has kicked off its second innings through a joint venture with Tata Motors, is now looking at multiple fuel options in its product range.

The Italian carmaker has already put in place a plan for production of three lakh engines, of which diesel alone will account for two lakh units with petrol engines taking up the balance.

Next on the agenda is the strategy successfully experimented in Latin America, which banks on providing multiple fuel options such as compressed natural gas (CNG), liquefied petroleum gas (LPG) and ethanol-blended gasoline in its models.

“With a little modification, we can produce CNG engines in our petrol engine lines. This is something that we have in mind,” Mr Mauro Mollo, Powertrain Division Head, Fial, told Business Line.

Fuel Shift

Fiat produces CNG engines in parts of Europe and Latin America. In 2006, its Brazilian arm launched the Fiat Siena Tetra Fuel, which operates on CNG, ethanol, gasoline and ethanol-blended gasoline. Fiat produced 50,000 natural gas-fuelled vehicles in Italy last calendar year.

Mr Rajeev Kapur, CEO, Fial, had already gone on record to say that the company would launch a CNG version of the Palio in 2009. This initiative is in line with the Indian automotive industry’s move to shift to environment-friendly fuels, which promise less operating cost and lower emissions. For instance, Indica, Santro, Wagon R, Ikon and Marina have both CNG and LPG options.

Sources say this could spread across to other parts of the country except that only a handful of metros cater to supply of these fuels.

Export plans

Fiat has also drawn up an export agenda for cars produced in India as part of its efforts to optimise the production base in terms of costs and capacity utilisation. Mr Kapur said 800 units were targeted for this fiscal. This could include the Linea, which recently rolled out of the Ranjangaon plant near Pune. The company had begun exporting the Palio to South Africa and efforts are underway to target all right-hand drive markets spread across Asia. Nepal and Sri Lanka are on the immediate radar.

Related Stories:
Fiat India rolls out first Linea from Ranjangaon
Fiat to export engines from India venture

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