Fiat is planning to launch custom-made car for Indian buyers by the year 2011. The company does not intend to enter the ULC segment but the new small car will be positioned in the A-segment and will be manufactured in India at its Ranjangaon manufacturing unit. The new model will also have high level of localization to keep the cost competitive and yet deliver quality to the customers.

"We are in the process of creating a vehicle for India which will be positioned at the mass market. The designing is being undertaken at our headquarters in Turin, Italy. We intend to launch this in 2011 and the prototype is being worked on," said Rajeev Kapoor, Fiat India Automobiles President and CEO.

Fiat is not the only auto maker planning for a made-for-India car. Toyota, Honda and even Hyundai are planning to introduce cars in India that will be specifically tailored to suit Indian customer’s demands and expectations. Indian auto market is extremely price sensitive and tends to prefer smaller cars.

Fiat also intends to generate volumes. It made its foray in the Indian market with a brand building exercise and a top down approach. It launched Fiat 500, Fiat Linea and Grande Punto in India to revamp its brand value in the country. “We are developing different low cost cars, and one can be for launch in India. But it will be in the upper low cost segment, in the price range of Rs. 4-5 lakh,” cleared Silverio Bonfiglioli, COO, International Operations, Fiat group Automobiles S.p.A.