Fiat To Launch New Small Car In India

Published: Wednesday, July 6, 2011, 17:34 [IST]

Italian carmaker Fiat has said that it was considering plans to introduce a new car in India through the CBU route. Fiat is operating in India through a joint venture with Tata Motors. It can be recalled that Tata Group Chairman Ratan Tata had earlier proposed that Fiat should launch new models in India to boost its fortunes.

Fiat India CEO Rajeev Kapoor while speaking to media persons said: “There are different routes and opportunity to launch a model in India and the completely built unit route is one of them. Every route is open to us and we are still evaluating." he did not elaborate on which model Fiat India would launch soon or any other details about the car.

Fiat is currently developing a new small car specifically for the Indian market. Speaking about this car, Mr Kapoor said: “he small car is under development. We had announced earlier that our intention is to launch it in 2012. The exact timing and details will be shared when we will be ready with the product."

Fiat India currently builds the Punto and the Linea while it imports the 500 small car from Italy. One can only speculate about which car will be imported as a CBU by Fiat India. In all likelihood it will be a diesel variant of a city hatchback.

During the Auto Expo in January last year, the company had said it would develop a small car specifically for the Indian market, with 80-85 per cent localisation of parts. The small car would be produced at its plant in Ranjangaon, Maharashtra.

Fiat India has also restructured its management with two directors returning to Italy and their positions being taken by new incumbents.