Fiat wants to source components from India
05 Apr 2007
Bangalore:
Fiat of Italy wants to source auto components from India for most of its global
models.
Company officials said with the factory in Ranjangaon nearing completion, the company could see the company increase efficiency by 10 per cent as the cost of labour as well octroi from its Mumbai plant was eating into income. The company expects better efficiencies from its new plant as well savings on operational costs.
Fiat exports about €3 million worth of components for its Palio model currently. Now the Italian carmaker wants to source more parts from Indian auto component manufacturers for most of its models and even those which it will not manufacture in India. Initially, it will source components for the Grande Punto as well as Linea.
As per the phased expansion of the factory at Ranjangaon, about Rs4,000 crore will be invested over the next five years.
The current capacity of the plant is 1 lakh passenger cars and 2 lakh units of engine and gearbox. The current capacity is expected to be fully utilised by 2010.
As
per the joint venture agreement between Fiat and the Tatas, a Tata car will also
be produced from the same factory and is expected to roll out by 2008. While the
Linea as well as Punto will also be launched by 2008, Fiat is considering other
models as well and none of them will be below 1.4 lts.