Fiat to stay in India and invest more
Fiat is the pioneers in compact car segment in the world. However, they have failed to create much of an impression in the Indian market. Their reputation here in India has taken a serious beating with the kind of ownership experience consumer has with their cars and dealers. Parts are expensive, service support is not friendly. They have been in and out of the production cycle so many times that people now tend to look over Fiat as a brand when they look in the market to buy a new car.
However, Fiat has said many times before that they do not plan to leave India and plan to keep innovating before they get it all right. They have now announced that they would be investing more in this market for expanding their operations and also increase the sourcing of auto parts from manufacturers here.
Carmaker Fiat today said it would be sourcing components worth 10 million dollars from India in 2006. This is expected to grow even further in the coming years. Managing Director of Fiat’s India subsidiary De Filippis Giovanni said in a statement: “We have been sourcing components from India for some time now and expect this to be over ten million dollars in 2006.â€
India would be come a major source of supplier for components for the model Fiat Palio for the South African market. Fiat believes India to be a competitive market for components. They have also confirmed that they will resume production of cars like ‘Palio’, ‘Petraâ€™, and the ‘Adventure’ at Kurla from January 2006.