Fiat to revive India operations

Terming India as a strategic market, struggling auto-maker Fiat on Wednesday said it has set a 12-month period for effecting a major restructuring of its operations, including the dealer and service networks, following which it would look at new launches in the market.

"India is a strategic market for Fiat and we will take all measures to make it profitable for us," Paolo Castagna, managing director, Fiat India said.

The company, which has been in a near-crisis situation following a massive decline in sales and under-utilisation of installed capacity, has of late been taking measures to boost its fortunes in India.

The measures include a new head for the company with the entry of Castagna in June and induction of Indians in the top management positions.

"We are taking a long-term view of the market and hope to turn around the current position," he said.

Elaborating on the 12-month strategy, he said that apart from "rationalising" the dealer and service network of the company, the company would also make efforts to revamp the 'Brand Fiat' in the consumers' mind.

"We are concentrating from the commercial side... restructuring and deepening relations with the dealer," Castagna said.

Sales for the company, which has an annual capacity of about 60,000 units at its Kurla plant in Mumbai, have fallen to as low as 100-150 units.

Fiat has invested close to Rs 2,000 crore (Rs 20 billion) in its Indian operations and had seen a massive surge in sales when it launched the Palio a few years back.