Fiat has launched its Grande Punto model on the Indian market and is eyeing much higher market share.
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Historically, Fiat has made heavy weather of the Indian market – the locally made Palio being a notably poor seller. However, it believes the Grande Punto can act as a vital bridgehead to expanded India sales, alongside its relationship with Tata which should aid distribution.
The firm also hinted that it could sell Chrysler models in India in the future.
Fiat-India CEO Rajiv Kapoor told reporters at the launch that he hoped the Grande Punto would help the company capture a market share of 11-12 percent.
Fiat projects a monthly sale of 2,500 units for the Grande Punto.
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By GlobalDataSilverio Bonfiglioli, Fiat’s chief operating officer for international operations, told Dow Jones Newswires on the sidelines of the car launch that Fiat is aiming for 10% market share by 2015.
“The market will grow to 2.5 million by 2015 and (we) want to achieve around 10% of that market,” Bonfiglioli said.
Fiat is producing the Punto at a factory in western India. The plant at Ranjangaon in Maharashtra state also manufacturers the Linea sedan and Palio hatchback.
Dow Jones reported that Bonfiglioli also said Fiat plans to export about 250 cars to South Africa each month starting July.
Fiat also plans to buy EUR250m of parts annually from India by 2010, Bonfiglioli said, adding, parts in India are 10%-15% cheaper than most countries.
