Italian automaker Fiat is planning to produce a low-cost car for India. The low-cost car may make its debut in Indian market by the year 2012.

 

Talking to media, the Chief Operating Officer, Fiat Group Automobiles International, Mr Silverio Bonfiglioli said that, this low-cost car would be put at the bottom of the B segment, which includes among others Hyundai’s Santro, Tata’s Indica and Maruti’s Alto.

 

It is expected that the low-cost car will be rolled out from the Ranjangaon plant near Pune. This plant is a 50:50 joint venture of Fiat with Indian automaker Tata Motors.

 

It is also estimated that, by 2012 this plant will produce about 200,000 cars. Out of these, Fiat’s products will include Palio, recently launched Linea, Grande Punto, which is to be launched during this calendar year and the new low-cost car.

 

Sources said that out of these 2 lakhs cars Tata Motors’ own products will be around 100,000 units that are half of the total numbers. But depending on market reaction to the products concerned, the proportion of production could change for either company.