Fiat not to dump Uno, prices Siena Weekend at Rs 727,000

Fiat India Automobiles Limited launched the station-wagon version of its mid-sized car Siena Weekend, priced at Rs 727,000 (ex-showroom Delhi), Rs 90,000 cheaper than competitor Maruti Baleno Altura, and announced that its small car Uno will not be discontinued despite a major erosion in sales.

The Siena Weekend has been introduced in petrol- and diesel-driven versions. The petrol weekend sports a price tag of Rs 727,000, while the diesel model has been priced at Rs 787,000, FIAL director (sales and marketing) Enrico Ferraro said.

A safety packaged version of the car will be also be Rs 60,000 dearer. The car will have safety features as anti-lock braking system and airbags.

Siena Weekend is part of the Project 178 (World Car Project) under which Fiat is producing five vehicles on a common platform. These include Siena, Siena Weekend, Palio, a van and a pick-up.

FIAL managing director Giovanni Ravina said the company will be introducing its next small car -- Palio -- in India in the first half of the 2001 calendar year. The car will be rolled out with over 80 per cent local content level.

''We are currently working on hiking the localisation level of the car to bring down costs and price the car competitively. We expect Palio to bring us volumes and drive us to profit,'' Ravina added. The company, he said, is looking at a breakeven period of three years.

When asked if Palio is expected to cannibalise its existing model Uno, Ravina said that Palio will be positioned in a different segment. ''There is no question of discontinuing Uno. We will be reviewing the position of Uno after Palio's launch, but we will continue to produce Uno till there is demand for even a single car.''

The petrol Siena Weekend is powered by a 1581cc engine delivering 98hp at 5500rpm, while the 1698td diesel engine delivers 63hp power at 4500rpm. Its safety features include fire prevention fuel cut-off system, collapsible steering column and impact protection valves.

Meanwhile, FIAL has commenced export of component from India to its manufacturing bases across the globe. The parent company -- Fiat Auto -- is sourcing cooling systems, dashboards and other plastic parts from India for the World Car Project.

Speaking on the occasion, Alfredo Altavilla, product manager for the World Car Project, said that India has been identified as a major production base for Fiat Auto of Italy. However, the company is not in favour of introducing the van and pick-up from the World Car Project in India.

''The market for pick-ups has not developed as yet in India.''

The company, he added, is also working towards introducing modifications on the Siena Weekend and Siena to improve its ground clearance. In addition, the new 1.6 litre petrol engine will also be introduced on the Siena next year.

The company is also trying to achieve 78 per cent local content on the Siena by the end of this year. The weekend was introduced with 40 per cent local content level.

''We have already started local assembly of the Siena and 1.2 Uno engines. By April next year, the 1.2 litre engines would be fully localised,'' Ravina said.

Ferraro said the company is planning to sell 600 units of Siena Weekend in the remaining part of the 2000 calendar year and take it to 1,500-2,000 units in 2001. In addition, the company expects to export Rs 1 billion worth of component from India in 2001 and 2002.

The company has targeted to sell total 30,000 units in 2001 and take it up to 70,000 units by 2003 to corner an 8 per cent share of the Indian passenger car market.

In the premium small car segment, the company intends to sell 23,000 units of Uno and Palio in 2001 and hike it to 59,000 units by 2003 and end with a 15 per cent market share. In the mid-sized segment, the company is targetting sales of 6,000 units in 2001 and intends to jack it up to 10,000 units in 2003 and corner a 7 per cent market share with Siena and Siena Weekend.

FIAL has already put in place 55 dealerships for the purpose and intends to hike it further in the future.

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