Fiat India Automobiles aims to increase localisation in the manufacturing process of its two cars -- Linea and Grande Punto -- to 90 % by early next year.
"We have achieved a 65 % localisation in both and we are increasing it month by month. By early 2010, localisation will be to the tune of 90 %," Fiat India's President and CEO Rajeev Kapoor told PTI here.
Localisation of its third car, the Palio, is at 60 %.
Fiat India is a joint venture between the Fiat group and Tata Motors and has its manufacturing facility near Pune in Maharashtra.
The advantages of localisation are a healthy saving on logistics costs and import duties.
"Production costs are lower and besides, we can achieve just-in-time supply and have a better control over quality," he said.
"There is around a 15-20 % savings because of localisation in the cars produced in India and their equivalent worldwide," Kapoor said.
Fiat India has also commissioned a robotic paint-shop at its Ranjangaon plant.
"From May one, 100 % of our production will be painted in this paint-shop. It has the capability to paint simultaneously in 14 colours," Kapoor said.
All of Fiat's products -- Palio, Linea and the Punto -- will be painted here, he said, adding, "Earlier, the Palio was sent for painting to the Tata Motors facility, but now it will be done at Fiat's Ranjangaon plant itself."
The entire production of 1,60,000 units per annum, at peak production, will be painted in this paint-shop. Once this figure is reached, Fiat plans to up the number to two lakh units per annum, Kapoor said.
Having an in-house paint-shop enables Fiat to introduce new colours and in the next month, some new colours would be introduced on the Linea, he said, without, however, divulging any details.
On whether because of the cost-efficiencies achieved, Fiat would lower the prices of its cars, Kapoor said that prices have been fixed after factoring in the localisation.
At present, the price of the Linea ranges from Rs 6-8.5 lakh and the Palio, from Rs 3.10-4.10 lakh. The Punto is planned to be launched in the third quarter of this year, he said.
"Plans are on track for the Punto and we plan to launch it in Q3 this year," Kapoor said.
The total capital outlay for the plant is Rs 4,000 crore.
