Fiat's Punto to be priced higher than Swift, Getz

The Italian car company Fiat's much-awaited launch of the year, Grande Punto hatchback, which is expected to take on Maruti Suzuki's Swift and Hyundai's Getz, will not be priced close to the two models.

RIDING HIGH

The company is confident of selling around 3,000-4,000 units a month

It is planning to sell Punto as a lifestyle product

The Ranjangaon facility, where Tata Motors and Fiat have committed joint investments, will produce engines

Distribution and marketing of all Fiat cars is the responsibility of the Tatas

Grande Punto will be Fiat's next offer after it launched a rejuvenated Palio earlier this year. The car, however, will be priced well above Palio, which costs Rs 3.6 lakh (ex-showroom Mumbai).

The company is confident of selling around 3,000-4,000 units a month. This is a sizeable figure for the European company as it could sell 1,600 units of Palio last year.

De Filippis Giovanni, managing director, Fiat India, said, "Even as the car falls in the same class, we may price Grande Punto at a premium compared with Swift and Getz."

Company sources said Fiat's strategy with Grande Punto will be to sell it as a lifestyle product.

Maruti has already sold 150,000 units of the two-year old bestseller Swift in India. The company launched its diesel version in early this year and now it generates more than half of the total sales of the company (4,000 out of 7,000 units every month).

Hyundai has also made available Getz's diesel versions.

Although Punto will be available in petrol, a diesel option will also be considered. The Ranjangaon facility, where Tata Motors and Fiat have committed joint investments, will produce engines for both fuel variants. Fiat, presently does not offer any diesel option with its cars.

The joint facility will make cars and engines for both Tata Motors and Fiat.

Although it remains largely unclear on capacity-sharing ration between the companies both companies agree that there is full flexibility in sharing capacities.

Giovanni said distribution and marketing of all Fiat cars will be the responsibility of the Tatas and Fiat is not expected to make any headway in it. "We will only produce cars and its up to Tata Motors to market them", he added.

The premium compact car segment is continuing to grow as the entry-level small car segment is shrinking.