The Hindu : Business : Fiat India launches Adventure Sport

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Saturday, Jun 04, 2005

Business

Business

Fiat India launches Adventure Sport

Staff Reporter

To target brand strategy at premium end

GAINING CONFIDENCE: The Managing Director of Fiat India, Paolo Castagna, with the newly launched Adventure Sport in Mumbai on Friday. — Photo: AP

MUMBAI: Fiat India on Friday re-affirmed its presence in the Indian market with a renewed brand strategy, focusing at the premium end of the growing automobile sector.

Addressing his maiden media conference at the launch of 1.6 litre petrol Fiat new Adventure Sport, the new Managing Director, Paulo Castagna, said, "We understand the issues Fiat has faced in the Indian market. Our focus is clear and we are here to stay. We have recognised the various roadblocks and understand the need to create the required consumer confidence making Fiat the preferred choice. We need to streamline our operations and target our brand strategy at the premium end.''

Fiat India had incurred a loss over a period and last year, Rs. 1,300-crore of debt was written off. "We only have around Rs. 29-crore of bank debt,'' said Dr. Castagna. The company has been reeling under severe problems in a competitive environment and, in fact, has sold only 200-300 units in the last three months.

In India, the company has two units — one at Ranjangaon, Pune, and another in Kurla, Mumbai. It has invested Rs. 2,000 crore till date in these facilities.

The Ranjangaon facility has a capacity to produce up to 70,000 units annually while the Mumbai plant can make up to 60,000 units annually. While the Ranjangaon facility is now idle, the Kurla plant makes petrol and diesel versions of the Palio, the Petra and now the Adventure.

On the product front, Dr. Castagna, said, "We are relying on our broad portfolio of products, brands and engines. Within this portfolio, we are analysing the best choice for the future for the Indian consumer and the clinical tests we have concluded for the Panda and the Idea have provided positive results.

"The task was to ensure that we create a product with the required technical specifications with the correct costing and perfect pricing structure.''

The Fiat Adventure Sport 1 comes in formula red, thunder black, silver frost and glacier white. It is priced at Rs. 5.58 lakhs ex-Mumbai and will be available across the country soon. Fiat plans to make 100-200 units of the Adventure Sport a month and slowly ramp up production.

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