Fiat foresees Grande drive to break-even in 2 years

Fiat India is betting on its new models — compact car Grande Punto and sedan Linea — to drive it into the break-even zone two years from now.

The 50:50 JV between Fiat Group Automobiles and Tata Motors, which sold just 8,000 odds cars in 2008, expects the number to swell to 50,000 units this year. Company officials say that as much as 90% of the sales this year would come from Grande Punto and Linea.

“Grande Punto will be our volumes driver going ahead as we see a huge under-tapped market in the premium compact car segment. Our sedan Linea, since its launch, has already become the second-largest selling car in its segment after Honda City,” said S Krishnan, VP — commercial passenger cars, Tata Motors.

Krishnan said that the company is currently looking at some other cars from Fiat’s international portfolio for an Indian debut. However, he also added that it’s too early to comment on the segment or model.  In overseas markets, the parent Fiat Group sells popular models like Panda, Doblo and Multipla.

Like several of its other competitors like GM and Toyota, Fiat India is also shifting its focus to the compact car segment. Rajeev Kapoor, CEO of Fiat India, said that the company has put on hold the launch of its D segment premium hatchback that would have cost Rs 25 lakh in India.

“We are bullish the compact car segment and will look to launch an India specific compact car going ahead. I cannot give you a time frame as we are studying the market, but certainly compact cars will be a priority,” said Rajeev Kapoor, CEO, Fiat India.
Fiat India will also increase focus on its other small car range — Palio and Fiat 500. The focus on the compact car is commensurate with the company’s plans to sell 2 lakh units annually by 2015.