Fiat not to introduce Ferrari in India

Both Ferrari and Alfa Romeo have vehicles positioned in the high-end segment of the automobile industry. “It does not make good business sense to introduce these models here without a good and viable market. It would not give us volume sales to even commence import and sale of completely built units of these cars,” Ravina said.

“For bringing these cars to India, we have to ensure that a good service back-up is in place and the volumes would not justify makingsuch huge investments,” he added. However, the company is contemplating introducing the van, which would be produced under the world car project in India. “It is just a thought and no final decision has been made on the same as yet.”

Under the project, Fiat would be introducing a family of five cars sharing the same platform and a number of major components. The modular project consists of the Palio hatchback, Siena saloon and the Palio weekend station wagon, all three of which will be manufactured in India. The other two members of the family are a pick-up version and a van.

While the Siena would hit the city streets this month, the Palio and Palio Weekend would be introduced by the year-end. On the roll-out schedule for the Palio and Palio Weekend, he said the vehicles would be rolled out within a gap of two to three months. “So far, we intend to launch the Palio first, to be followed by the Palio Weekend… But depending on the market conditions and plans of competitors, we can alter theplans.”

Though the final tags for the two vehicles have not been finalised as yet, the stationwagon is likely to be priced almost Rs one lakh costlier than the hatchback. Under the world car project, Fiat is also planning to locally manufacture in India the engines and transmissions of Siena, Palio and Palio Weekend.

This is as part of the company’s plans to achieve total 95 per cent localisation in India with the world car project, Ravina said. “All the three cars to be produced in India under the programme share similar components, engines and platforms, which makes it easier for us to achieve optimum indigenisation. Except for certain special parts of a single model like the rear door of the Palio, rest of the components would be produced locally,” Ravina added.

Initially, the Siena would be rolled out with a local content level of 20 per cent, which later be raised to 60 per cent by the end of the 1999 calender year and to 95 per cent thereafter. Fial has already set up separate assembly linesfor Siena in Ind Auto Limited’s Kurla unit. Besides, substantial investments are being made on a continuous basis at Kurla in the form of a Rs 80-crore welding shop and a Rs 70-crore integrated paint shop. The Siena assembly line has cost around Rs six crore. The welding shop would be commissioned by October 1999, which would help in raising the indigenisation level of the Siena to 60 per cent.

This would be part of the one billion dollar investment which the parent company — Fiat Spa — has pledged for India over the next five years. The entire investment is to flow into the mechanical and automotive sectors. “We are not against locally manufacturing the engines and transmissions here. But there are certain special components, local production of which does not make good business sense… But if volumes grow, we do intend to produce them here as well,” he added.

As part of the indigenisation programme under the world car project, around 40 of Fiat’s international vendors would be setting up shops inIndia. Two versions of both Siena and Palio would be produced in India. Besides, the cars would sport both petrol and diesel hearts. The range introduced in the Indian market comes with two different engines — a 1.2 mpi (multi-point injection) fire petrol unit and for siena, a 1.7 turbodiesel unit as also two equipment levels of el and elx. Airconditioner is a standard feature in both the versions.

The 1.2 mpi petrol engine is fitted to the siena and the palio. This four cylinder overhead camshaft engine delivers 72 bhp at 6000rpm. Its torque rating is 10.2 kgm at 3000rpm. The four-cylinder transverse 1.7 turbodiesel engine delivers a power of 64 bhp at 4500 rpm.