Fiat plans shock pricing for Grande Punto, Linea


High localisation levels will result in ultra-competitive pricing

Fiat plans to price its new Grande Punto and Linea models very aggressively when they are launched in India in mid-2008. While the Grande Punto should be priced at par with cars like the Getz 1.3 at Rs 5 lakh, the Linea would give the Maruti SX4 a run for its money at a Rs 6.5 lakh sticker price.

The Fiats should have an edge over their rivals since they will be the largest in their class, offering solid build quality, spacious interiors, as well as the option of a diesel engine, all at a very competitive price.

Key to this aggressive pricing is their very high localisation, with the engines themselves being 85 per cent indigenised at the time of launch. Currently, Fiat is building its huge new Ranjangaon plant near Pune, which will be the production base for the two cars. Production of the Palio Stile is already underway on a new assembly line here. Among the engines Fiat will make in India is the 1.3-litre Multijet diesel, which currently powers the Swift Diesel. In fact this engine is all set to become one of the most popular and widely used diesels in India, with other carmakers like GM and Tata also planning to use it in their future models.

Fiat’s localisation plans would get a boost since many component suppliers are already making parts for this engine in India. Bosch, for example, already makes the critical common-rail injection system in India. Other engines which will be made at Ranjangaon are the 1.2-litre and 1.4-litre petrol engines, as well as manual transmissions. While Fiat won’t be stamping the body panels for these models in India, it will have a body shop for welding the panels as well as a paint shop, engine shop and assembly line at its new facility.

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