Fiat planning to make India an Export hub for Chrysler

Modified On May 17, 2013 02:23 PM By Amit

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Italian car maker, Fiat is doing a feasibility study to review that if it can turn the Indian auto market as an export hub for the Chrysler brand. This is the part of the company's strategy of expanding its footprints in Asia-Pacific region.

Fiat has 58 per cent stake in Chrysler, and is aiming to increase the company's market share in the Asia Pacific region. According to the report published on Livemint, senior officials of the Group already meet with component suppliers in January to examine the possibility of setting up a manufacturing base. It is also expected that more such type of meeting with vendors will be organized in June. Enrico Atansio, the outgoing managing director of FIAT Group Automobiles India Pvt. Ltd said,

“We are doing a lot of feasibility studies in India and this is one of them. There should be more clarity on this by next year”. The “possibility of an export base is also there”. However, He didn't confirm if the export hub is only for Chrysler or for other brand.

Fiat is aiming to develop 600,000 units of Chrysler's brands in India and 90 per cent of the production will be exported to the Asia-Pacific region. If the company initiated this plan, then Chrysler will commence exporting cars from India in 2015. According to the vendor, which was in meeting, said, "They may be doing a feasibility study for the plant site and models but it is certain that they are coming here”. The vendor is looking to provide airbags and seat belts to Chrysler, and expects an order of Rs. 50 crore per month from the group. The company is also expected to organise a biding process for vendors in the June meeting.

“How much we sell in the first year of the new Fiat-Chrysler group will depend from customer acceptance to our products as we are designing new models to suit emerging markets like India. Based on that achievement of sales results could be quicker or slower, but we maintain ambitious plans for the Indian market,” Atanasio said.

Source: Livemint