This is part of the company's plans to achieve total 95 per cent localisation in India with the world car project, Gianni Ravina, managing director of Fiat India Automobiles Private Limited (FIAL), a wholly-owned subsidiary of Fiat S.P.A. told UNI here.

``All the three cars to be produced in India under the programme share similar components, engines and platforms, which makes it easier for us to achieve optimum indigenisation. Except for certain special parts of a single model like the rear door of the palio, rest of the components would be produced locally,'' Ravina added.

Siena, the first of the three cars to be rolled out, would hit the city streets in May and would have a local content level of 20 per cent. This would be raised to 60 per cent by the end of the 1999 calender year and to 95 per centthereafter.

FIAL has already set up separate assembly lines for Siena in Ind Auto Limited's Kurla unit. Besides, substantial investments are being made on a continuous basis at Kurla in the form of a Rs 80-crore welding shop and a Rs 70-crore integrated paint shop. The Siena assembly line has cost around Rs 6 crore. The welding shop would be commissioned by October 1999, which would help in raising the indigenisation level of the Siena to 60 per cent.

This would be part of the $1 billion investment which the parent company -- Fiat S.P.A. -- has pledged for India over the next five years. The entire investment is to flow into the mechanical and automotive sectors.

``We are not against locally manufacturing the engines and transmissions here. But there are certain special components, local production of which does not make good business sense...But if volumes grow, we do intend to produce them here as well,'' he added.

Under the world car project, also code-named Project 178, the company would beintroducing a family of five cars sharing the same platform and a number of major components. The modular project consists of the Siena Saloon, Palio Hatchback and Palio Weekend Station Wagon, all three of which will be manufactured in India. The other two members of the 178 family are a pick-up vehicle and a van.

As part of the indigenisation programme under the world car project, around 40 of Fiat's international vendors would be setting up shops in India. As per the memorandum of understanding signed with the Directorate General of Foreign Trade (dgft), the company is to achieve 70 per cent local content level within the stipulated period of five years. ``But our aim is to exceed that level and so we are getting our global vendors to India.''