Fiat Automobiles India has announced its plans to introduce a low-budget compact car to the Indian market by 2012. This car would fall in the list of the lower B segment cars and will be customized according to the needs of the Indian car market.
Fiat Group Automobiles International COO Silverio Bonfiglioli told reporters, "The demand for small cars has been rising exponentially and Fiat is looking at generating volumes by introducing more such cars. We will be launching a new global car designed for the needs of the Indian and other emerging markets."
It has been revealed that the Ranjangaon facility near Pune in Maharashtra might be used for manufacturing select models for the global market as well. The existing facility 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.
Moreover, Fiat has mentioned that it is considering a new brand of low-cost cars for the international market. The car manufacturer believes that different sub-segments of the small car vary with profit margins but small cars per se do not mean lesser profitability. Currently, Fiat small car models, Palio Stile and newly launched Grande Punto, are sold in India through the company’s joint venture with Tata Motors.