The major automobile company in India, the Fiat India has recently announced that they are planning to achieve a 90 per cent localization within the next two years. The company officials have stated that the company is going to achieve a 60 per cent localization within the next one year and their target is to take it to 90 per cent by the year of 2010.
Talking about the companys plans, the President and CEO of Fiat India, Mr. Rajeev Kapoor said, "In a years time we will achieve 60 per cent localization. We will upgrade it to 90 per cent by 2010". He was also talking about the sourcing of components from the local vendors and said that the company would be sourcing 1.3-litre multi-jet diesel engine from the Maruti Suzuki. The diesel engine is being produced in Maruti Suzukis Manesar plant under license from Fiat.
Mr. Kapoor said that Fiat is also looking at the vendor base of its Joint Venture partner, Tata Motors and building up its own vendor base as well. When asked about the companys other plans, Mr. Kapoor said that Fiat India is not thinking of making new models in 2009, as it will be primarily focusing on establishing the existing models in India. He said, "Our focus in 2009 will be on consolidation of market. It will take about a year".
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| Posted : 2/26/2008 |
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