Reference Auto

Fiat’s journey into India has been a bumpy one despite a tie up with Tata Motors but the Italian company seems to be lining up plans to launch a small car and is also contemplating bringing in a new model under the completely-built unit or the CBU that are likely to come with new engine technology, Fiat’s USP.

Seeing the country’s small car market sizzle, Fiat India president and CEO Rajeev Kapoor said. “There are eclectic routes and opportunities to launch a car in India and the completely-built unit route is one of them. Every route is open to us and we are still evaluating our options.”

He, however, declined to divulge details such as the model the company plans to bring in and a possible time-frame of the vehicle’s launch.

Currently, Fiat India is developing an India-specific small car at its research facility in Turin (Italy) and is taking a feedback from its India unit in order to focus on the needs of the domestic customer. The small car is likely to roll out from Fiat’s plant in Ranjangaon, Maharashtra.

Kapoor had said the car could be similar to or even smaller than its existing hatchback, the Palio.

“The small car is undergoing development. We had earlier announced that we wanted to launch it in 2012. The exact timing and details will be revealed when we are ready with the product,” Kapoor added.

It was during the Auto Expo in January last year that the company had unveiled its plan to develop a small car for India’s market and had targeted localisation of nearly a whopping 85 per cent for the car’s parts.

Meanwhile, Fiat India has restructured its board with the replacement of two directors. The 10-member board has equal participation from Fiat Group Automobiles SpA and Tata Motors.

As part of the reshuffle, Giovanni Bartoli and Harald Jakob Wester have moved back to Fiat’s headquarters in Italy.

In their place, the company has brought in Gianni Coda and Alessandro G Baldi as directors in Fiat India Automobiles. Fiat has also appointed Ezio Barra and Giovanni Sella as alternate directors for Coda and Baldi, in case Coda and Baldi are not available.

Speculation is rife that Fiat’s small car could contend with Maruti’s Alto and Chevrolet’s Spark, and with the quality of Fiat’s engine being the Italian car major’s USP, we could expect the latest engine technology to come with the Italian firm’s cars.

Moreover, with Fiat being the leader in diesel technology, a diesel variant could be expected soon enough, and with fuel prices hitting the roof, a diesel small car could become the cynosure of all eyes in India, provided the price is not too steep.