Fiat may earmark Ranjangaon India as its global base

Following its cues from its competitors in India like GM, Hyundai, etc, Fiat S.p.A. is weighing the possibilities of earmarking its Ranjangaon plant near Pune as a global base for some of its models, especially small cars that are meant for Europe and other developed countries. Fiat India Automobile Private Limited (FIAPL) is also keen to establish a full-fledged R&D centre in the country, in association with its joint venture partner Tata Motors. Currently, the Indian arm of the Turin-based company has developed a small R&D unit at its existing plant dedicated to testing of its current models.

“It eventually boils down to standardisation of volumes. Perhaps our own low-cost car for Europe could even be made in India,” said Sergio Marchionne, chief executive officer of the Fiat group. “This facility has the infrastructure to build the Fiat brand in India. It can be an integral part of the manufacturing footprint of Fiat worldwide and that is a big issue for us,” he said.

According to a senior representative of Fiat Group, the Ranjangaon facility could be used for manufacture of select models for the global market. But, he states that the move boils down to standardisation of volumes. He even hinted that its low-cost car for Europe could even rolled out in India. He further added that the existing facility at Ranjangaon has the infrastructure to build the Fiat brand in India and is expected to be an integral part of the company’s manufacturing footprint of its worldwide operations.

Fiat currently has 50 percent joint venture with Tata Motors to produce 200,000 cars and engines in India. It is also ready to launch its popular models Linea and Grand Punto India and plans to roll out nearly 70,000 Fiat cars by 2010. It will also launch its comprehensive R&D centre in India in association with Tata Motors.

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