Fiat plans to use India as global source - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Fiat plans to use India as global source

Aug 17, 1999

According to newspaper reports, Fiat of Italy plans to turn its facility at Ranjangoan, Maharashtra into a global sourcing base. The Rs 16 bn Ranjangoan facility was originally planned as a domestic production base. The plant will be commissioned only by 2001. The delay is being ascribed to the emerging gap between Fiat's earlier market estimates and actual sales. Fiat has a presence in the mid-car segment through Uno and Siena. The recent surge in small car sales has encouraged many car companies to unveil ambitious expansion plans. For instance, TELCO has plans to step up Indica production to 5,000 cars a month from September 1999. Hyundai also has plans to enhance Santro's production.

Companies in the mid-car segment have outlined ambitious plans to boost market share. Honda Siel will resort to imports in order to boost local market share. Ford India plans to introduce three versions of its Ikon model by November 1999. All these launches will make the mid-car segment even more crowded. This is one reason why Fiat's sales estimates for the Siena and Uno have gone awry, and have failed to meet the company's expectations. This has forced Fiat to look overseas to sell excess production at its Ranjangoan unit.

In a bid to enhance its presence in the country, Fiat is sprucing up its distribution and sales network. It will increase its dealerships from 45 to 70 by end of 1999. It will also enhance the number of service outlets from 65 to 200. This will enable the company to compete with other auto majors like Opel, Maruti, Ford and Honda on even keel.

Equitymaster requests your view! Post a comment on "Fiat plans to use India as global source". Click here!


More Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

India: Recovery Stalled by Vaccine Games? (The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.

A Stock with 700% Return Potential Comes with Additional Payoffs (Profit Hunter)

Apr 15, 2021

Narayana Murthy was one of the first unicorn founders to get the backing of this entity...

11x Bankruptcy to Bluechip Stock: A Rare India Revival Story (Profit Hunter)

Apr 16, 2021

There is no stopping this 11-bagger stock from significant upside.

Top 3 Nifty ETFs to Buy Now (Fast Profits Daily)

Apr 20, 2021

In this video I tell you the three Nifty ETFs I think are the best.

Why Did the Market Crash on Monday? (Fast Profits Daily)

Apr 13, 2021

In this video, I'll you what I think is the real reason behind yesterday's market crash.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


  • Track your investment in DAEWOO MOTOR with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks