Fiat to Make India as its Global Hub for Select Models

Tuesday 23 September 2008, 00:00 AM by Satish

Fiat is planning to make India as its global hub for manufacturing its select car models for Europe and other advanced countries. It already has its massive expansion plans lined up for the country. It will use its Ranjangaon facility near to manufacture some of its key car models in India. It may even produce its low cost car in India that will be sold in Europe. However, the low cost car may not carry the Fiat brand which is known for its premium car models in Europe.

Fiat Linea

"It eventually boils down to standardisation of volumes. Perhaps our own low-cost car for Europe could even be made in India," said Sergio Marchionne, chief executive officer of the Fiat group. "This facility has the infrastructure to build the Fiat brand in India. It can be an integral part of the manufacturing footprint of Fiat worldwide and that is a big issue for us," he said.

Fiat currently has 50 percent joint venture with Tata Motors to produce 200,000 cars and engines in India. It is also ready to launch its popular models Linea and Grand Punto India and plans to roll out nearly 70,000 Fiat cars by 2010. It will also launch its comprehensive R&D centre in India in association with Tata Motors.