Fiat India Ltd is to streamline its operations and rework its brand strategy at the premium end to reaffirm its presence in India.
"We are here to stay and we need to streamline our operations and brand strategy," the newly appointed managing director Paolo Castagna told reporters in Mumbai at the launch of the 1.6 litre petrol Fiat Adventure Sport vehicle on Friday.
He said as part of the overall strategy, the company aims to achieve greater cost reduction, customer satisfaction, and improve after sales service and dealer network as per Fiat's international standards.
On the introduction of Panda and Idea in the Indian market, Castagna said clinical tests have provided positive results but bringing them into the Indian market would take some more time.
"The task at hand is to ensure a product with the required technical specifications, including the amount of localisation, with the correct costing and perfect pricing structure," he added.
Asked if the parent company, Fiat Italy, would provide additional funds, Castagna said over Rs 2,000 crore (Rs 20 billion) has already been pumped into the Indian unit, in which it has over 99 per cent stake.
Fiat Italy has already written off a loss of Rs 1,300 crore (Rs 13 billion) more than a year ago and Fiat India presently has a bank debt of Rs 29 crore (Rs 290 million) only, he added.
The Fiat plant at Kurla, which has a capacity of 60,000 units a year, is presently producing the Palio (petrol and diesel), Petra and the new Adventure Sport. Average sale during the last three months has been around 200-300 vehicles, a company official said.
Another plant set up at Ranjangaon near Pune has a capacity of 70,000 units but is presently used as a training institute.
The Adventure Sport is priced at Rs 558,000 in Mumbai and is aimed at the new generation of consumers who seek out the latest trends in safety, engine, style and performance, the official said.
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