Fiat increases localisation

Fiat India Automobiles Ltd (FIAL) has said by early next year it will achieve at least 90 percent localisation both for the Linea and the Grande Punto, to be launched later this month. The mid-sized hatchback Grande Punto will compete against the Hyundai i20, Skoda Fabia and the Honda Jazz. According to Rajeev Kapoor, president and CEO, FIAL, “We have achieved localisation to the extent of 70 percent for the Linea and 65 per cent for the Grande Punto. We are constantly increasing it month by month and by early 2010 we hope to achieve 90 per cent localisation.” FIAL also plans to export the Grande Punto to right-hand drive markets around the world.

Localisation helps FIAL save substantial amounts on import duties and logistics. A company spokesperson explains, “There is at least around a 15-20 percent savings because of localisation in the cars produced here in India.” FIAL also recently commissioned a paint shop at the Ranjangaon facilty capable of painting the entire production capacity of 2, 00,000 units per annum.

Fiat is also looking to increase its dealer network, which currently comprised around 80 sales and service Tata-Fiat joint dealerships. By the time the Grande Punto is launched, FIAL aims to open 100 such sales and service dealer outlets.