| Fiat recently rolled out the Linea in the Indian market. From the looks of it, Fiat does have an ace up its sleeve, however the Indian marketplace is a tough judge and the verdict can only be given with time. Vikram Gour talks to Rajeev Kapoor, CEO, Fiat India Automobiles Limited in a bid to understand Fiat's game plan ZW: Fiat has shown a considerable amount of determination in the Indian market and highlighting this dedication is the state-of-the-art facility in Ranjangaon. Could you shed some light about the Ranjangaon facility in terms of capacity and gearing up for the new models? Rajeev: Our Ranjangaon facility is a state of the art property that has been built along the lines of Fiat's global factories. The sprawling 850,000 square meter area houses an engine and powertrain plant and our car plant. There is also a small car plant that manufactures the Palio and the Tata Indica, which conforms to our joint venture with the Tata Group. We are geared up to manufacture some of our upcoming models as well as some Tata models from our new facility which also has an integrated body shop, parts assembly unit and a strong vendor base within the region. The new facility has a capacity of 500,000 powertrain units and 200,000 cars. ZW: Tata also plays a role in your sales and distributorship network. Just what are these synergies? Rajeev: In 2006 we announced our alliance with Tata. Today Tata is a joint venture partner and together we distribute and sell our vehicles. Fiat has benefited by Tata's network and our endeavour is to have a Fiat-Tata support within every 250km across the country. By combining our efforts both companies have been able to garner a better service set up and therefore leverage a heightened ownership experience with both Tata and Fiat owners. ZW: Isn't there any competition with Tata vehicles. After all some Fiat models are in the same segment as Tata vehicles? Rajeev: Fiat and Tata work on a combined strategy. We ensure that there is no conflict of interest on a product basis and have worked to achieve a special product mix just to avoid such instances. The two companies have a specific target to span the entire segment and the roles for each individual company is defined according to that target. For example the Indica and the Palio are both hatchbacks but cater to a separate market segment. The same works for the Linea and the Indigo. ZW: The buzz amongst consumers and media claim that with the advent of the Linea, Fiat is attempting their third entry into the Indian market. What is your take on this? Rajeev: We are strengthening our position in the market and the Linea brings in a new thought and line for the company. We are bullish about our prospects and there has been a lot of enthusiasm within the company, especially about our new line of products. As far as our dedication to the market goes, Fiat has changed for the better. Earlier we brought in one of our iconic brands-the Fiat 500. That is a high end product that shows just what we are all about. The Linea is another fine product that displays our design and technology prowess as a car manufacturer. The Palio is a car that has done considerably well in the market as well and has been able to carve a niche for itself. I would not say that this is our third run, but it surely marks the fact that we are stepping up our activity in India. |