Fiat India Automobiles Ltd (FIAL), a 50-50 joint venture between Fiat Group Automobiles SpA and Tata Motors, said on Wednesday that the company was deferring its plan to bring in cars through the import route. Talking to the media during the launch of the much-awaited Grande Punto, Rajeev Kapoor, CEO, FIAL, said, ?Importing cars is not a viable to option at the moment. Rather, we would look at consolidating our production in the domestic market.?
Last year, the company had said it plans to import its super hatchback
Bravo through the CBU (completely built up) route. In fact, its 500 came in as a completely-built-unit from Italy, thus weraing a hefty price tag of Rs 17 lakh-plus. While all the imported 500s were sold off, the company is not certain it would be able to replicate its success with the new cars. The plan, therefore, looks to have been shelved for the time being.
Back to the Grande Punto, the premium small car is available in Indiawith two petrol engines (1.2 lt and 1.4 lt) and one diesel (1.3 lt) and is priced between Rs 3.99 lakh and Rs 6.11 lakh (ex-showroom, Delhi ). The petrol variants will wear a price tag of Rs 3.99-5.61lakh, while the diesel cars would be offered at Rs 4.85-6.11 lakh. The company said Grande Punto would be retailed through the 100-plus Tata-Fiat dealer network across the country.
The car will roll out from the company’s plant at Ranjangaon in Maharashtra, which was upgraded recently to prepare for the company’s new international models, the Linea sedan and the Grande Punto hatchback. The company hopes to sell an average of 2,000-2,500 units of the Grande Punto per month, which will be available in four variants?Grande Punto Active, Dynamic, Emotion and Emotion Pack. Tostart with, Grande Punto will have a localisation of 58%, which will go upto 85% by this year end.
The car was launched first in the European market in 2005. The biggest markets for Fiat are Italy, Germany and Brazil. With the launch of Grande Punto, the company hopes that India would take the third position.
The company has roped in Ravi G Bhatia, earlier general manager, marketing, at Maruti Suzuki, as president to head the commercial operations of the company. Fiat plans to start exporting the Linea and the Grande Punto by the month-end. ?We are looking at exporting 10% of the total production from our Ranjangaon plant to markets like South
Africa,? says Silverio Bonfiglioli, FGA International, chief operating officer, Fiat Group Automobiles.
The current installed capacty at the Ranjangaon plant is 1.6 lakhs units, which can go upto 2 lakhs units per annum. Capacity utilisation stands at 40-45% currently. Talking about investments, Bonfiglioli said, Fiat has invested Euro 0.7 billion in India till now.