Fiat’s Ranjangaon (Pune) plant has the capacity to produce 3.33 lakh engines a year and is reportedly capable of producing a much larger volume of engines than the company and its joint venture partner Tata Motors would ever need in the near future.

The company has decided to use this extra producing capacity to produce engines for export. The engine production in India, for its global operations is cost-efficient by 15-20 per cent and is likely to use Tata Motors’ facilities to export its products.

The initial volumes are not clear as new plan has to be worked out due to the slowdown in Europe. 1.3 litre Multijet diesel, 1.2 litre FIRE petrol and 1.4 litre FIRE petrol engines are produced at Ranjangaon plant. About 75000 vehicles are expected to be produced from Ranjangaon plant in 2009 and the first batch of the midsize car Linea will soon come out of the factory. It is slated for launch in mid –December. Linea is also going to be launched in South Africa.

Another model Fiat 500, a fully imported two-door lifestyle car, is priced around Rs 15 lakh and currently has 20 bookings.

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Posted by Amrith K.A on 15 November, 2008 1:18:02 PM IST #