Fiat Group Automobiles International chief operating officer, Silverio Bonfiglioli had stated that the company has identified India as a base for supplying components for its European operations.
The deliveries will commence from this year and by next year Fiat will be sourcing components worth 250 million euros for car and other divisions. The company has set up a sourcing office in Delhi and is also looking at developing designs in India in future.
Fiat, which makes engines in India, will also be exporting them for European operations starting this year.
Fiat has also launched the Linea, its new sedan, in the diesel and petrol variants. Designed by the Fiat Style Centre in Turin, the car will go on to become Fiat's flagship product in India.
The car has been priced between Rs7.10 lakh and Rs8.35 lakh for its petrol version in Mumbai, and will be available through a 100-strong Tata-Fiat dealer network, which will also ensure easy availability of the car and satisfactory after sales service for its owners.
Fiat is also working towards producing a low-cost car for India which is likely to debut by 2012. This car will be priced at the bottom of the B segment which includes cars like Santro, i10 and Indica and will roll out of its Ranjangaon plant near Pune, which is part of a 50:50 joint venture with Tata Motors.
Tata Motors and Fiat are already tied up over a number of projects including manufacturing low cost engines and the sharing of engineering teams, but the partnership could soon expand even further with Ratan Tata considering using Fiat to sell its Nano outside of India.