Fiat India has announced Rs 22 crore profits for the first quarter of this fiscal. Fiat had earlier reported a loss of Rs 166 crore for the corresponding period last year. In this period, revenues doubled to Rs 967 crore from Rs 473 crore, making the Tata-Fiat JV fruitful for the first time in three years.
From January 2008 to March 31, 2010, the JV had incurred a total loss of Rs 971 crore of which Rs 272 crore was in the last fiscal. Fiat India had invested Rs 4,000 crore in Ranjangaon to build a manufacturing facility with an annual capacity of 1.6 lakh units of 70,000 cars would be Fiat and rest Tata.
Increased production capacity and dealership expansion has helped the company to grow in the Indian market. Fiat and Tata currently have a sales network of 170 dealerships covering 130 cities⁄small towns.
Last financial year, Fiat produced 24,000 cars and this year the company hopes to double production, according to Mr Rajeev Kapur, Chief Executive Officer (CEO), Fiat India
“We are bringing out 90 bhp Punto, which will be the most powerful hatchback in the market, during the festival season. The high power version of Linea will also be launched around the same time. We hope to break even by financial year 2011-12,” Mr Kapur said.
The news brings happiness in Tata camp as well. Mr Carl-Peter Forster, Managing Director and CEO, Tata Motors, said, “We are looking to strengthen the Fiat brand in India.” He said that Fiat’s product range and marketing would be expanded. Tata Motors’ investment in Fiat India stood at Rs 999.54 crore as on March 31, 2010.