Fiat plans to revamp Uno, Siena models

MUMBAI, OCT 7: Fiat India, makers of Uno passenger car, is gearing up for competition from Maruti, Hyundai and Ford Motors by launching a...

MUMBAI, OCT 7: Fiat India, makers of Uno passenger car, is gearing up for competition from Maruti, Hyundai and Ford Motors by launching an intensive marketing drive and product improvements in the country to push sales of its Uno and Siena models. Ruling out any price cuts, Fiat India managing director G Ravina said that engine of Fiat Uno would be considerably improved8217; while Siena will witness a major transformation in its looks.

Speaking to this newspaper, Ravina said the company has sold over 1,500 cars per month in the last six months, which is likely to slow down due to more car launches in the mid-sized and small car segments by other manufacturers. While Hyundai is launching Accent by this month-end, which will be priced at around Siena and Ford Ikon soon after, Fiat is not taking the competition lightly.

8220;We are looking more at product improvements rather than selling cars at a discount and making losses,8221; Ravina said. Fiat has slashed Uno prices last year when Telco had launched Indica andMaruti had cut prices of its best-selling 800 model. 8220;Those days are over,8221; Ravina said.

For the calender 1999, Fiat expects sales of over 23,000 Unos and Siena which would go up to 35,000 by 2000-end. Of this, Siena priced at around Rs 5.5 lakh in Mumbai sold 800 units.

8220;We have to increase our market share by making product improvements and new car launches. The Palio will be out by early-next year to take on Zen8230; thus we will have one car in each segments. Siena Station Wagon, the local version of Palio Weekend, is also on cards,8221; he said.

The Italian company has chalked out plans to pump in another 280 million into its Indian operations apart from 220 million investment already made. The investment will be made in its modern welding shop in Kurla and its greenfield facility at Ranjangaon near Pune.

But all the new cars would be manufactured in the company8217;s Kurla plant due to spare capacity and the Ranjangaon facility would be used 8220;only if the demand goes up substantially,8221; saidRavina.

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With emphasis on quality, the dealer network will witness a transformation as the company is taking extra steps to train and educate dealers on how to deal with the consumers. From the present 57 dealers, Fiat expects its network to grow to 70 by 2000-end, he said.

The European carmaker has recently received the FIPB approval for hiking its stake in its Indian subsidiary, Fiat India Automobiles Ltd FIAL. FIAL currently holds a 76 per cent stake in Fiat Ind Auto which produces the Uno and Siena models in India.

Ravina said that a feasibility study to produce manufacture engines in India is currently on along with Ford Motors and the report would be out by December. A global agreement between Peugeot and Ford to make engines would not affect the Indian venture, he said.