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Fiat India is going for an overhaul.
Under a global revival strategy, the Italian major is planning to create a new
identity in the Indian market, by bringing its iconic brands like Ferrari, Alfa
Romeo, Maserati and Cinquecento.
As part of this revamp plan, Fiat
also plans to sell its excess capacity of engines, including the famed 1,300cc
multijet diesel ones produced at its Ranjangaon factory, to other companies, to
reap the benefit of shortage of such products in the Indian
market.
Rajeev Kapoor, CEO of the Fiat-Tata JV Fiat India Automobiles
Pvt Ltd (FIAPL), said the company is open to "opportunities in India and abroad"
to sell the excess capacity of diesel and petrol engines. "There were
discussions earlier, but so far there is no commitment. But capacities are
there. And the way it happens is that Fiat has to sign an understanding with
other companies, and the sourcing can be out of India," Kapoor told
TOI.
Outlining an ambitious and aggressive revival plan for Fiat in
India, a market where the company's volumes shrunk to 0.2% in 2007-08, or just
3,379 units out of the total car industry sale of 12 lakh units, Kapoor said,
"We have already launched Palio in the 1300cc multijet diesel engine and it is
picking up numbers. The next would be the Linea sedan around the festive season,
while the Grande Punto hatchback will be out early next year," he
said.
These cars with a high degree of localisation, would be Fiat's
answer to competition from companies like Maruti Suzuki, Hyundai, Honda and Tata
Motors.
And recognising the fact the luxury and sports cars have a
promising market in India, Fiat has also decided to unveil its core strength by
bringing some of its famed models via import route.
It has already
rolled out famous neo-retro concept car Fiat500, also known as Cinquecento, that
has been leading its charge globally, to be followed by another evocative
hatchback Bravo. There is also plan to roll out the top-of-the-range Alfa Romeo,
Ferarri and Maserati, though Kapoor declined to elaborate on
them.
Kapoor is not worried by the hefty Rs 15 lakh price tag of the
two-door Fiat500 and said the idea behind the style launches is not volumes but
to showcase Fiat's brand value to Indian audience. "It is certainly an effort at
building the brand. We want people here to see what Fiat stands for globally -
styling, safety and remarkable engine quality."
Banking on Tata-Fiat
co-branded dealerships for sales and service, the company hopes to increase
sales to 45,000 units in 2009, garnering a 3% share of the expected 15 lakh car
sales.
Kapoor said FIAPL would have a capacity of 300,000 engines -
1,300cc diesel multijet engines (used by Maruti Suzuki on its Swift and Dzire
and General Motors on Opel models) and the petrol 1200cc and 1400cc engines.
While the first priority would be to meet requirements of Tata
Motors and Fiat cars, the engines would also be exported to other Fiat plants
worldwide. The rest of the capacity will be sold to other companies
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