With demand from Tata Motors and Maruti-Suzuki set for an upward spike during the year, Fiat's manufacturing base for cars and engines at Ranjangaon in Maharashtra, is ready to increase its capacity utilisation from 70 per cent now, and possibly take it to its near optimal level by this year-end.
“Full capacity utilisation of the installed capacity of two lakh cars and 3,50,000 engines per annum at Ranjangaon plant would depend upon the overall market demand and requirement from both Tata Motors and Maruti-Suzuki,” according to Mr Piyush Lall, Assistant Genera Manager, Tata Motors Ltd.
Tata Motors serves as a distributor of Fiat car sales in India. However, lately, Fiat is in the process of setting up its own Italian style outlets for exclusive retail experience, he said.
New models launched
Addressing reporters after the launch of 2012 range of Fiat cars-Linea sedan and Punto hatch with new upgraded features, Mr Piyush Lall said the Fiat's manufacturing base in Maharashtra at present utilised 70 per cent of its capacity. The demand for cars manufactured for Tata Motors from this plant is likely to go up along with the demand for supply of engines for Maruti-Suzuki.
The latter recently entered into a pact for additional engine supplies. “We hope the full capacity utilisation could come through this year. It all depends on the overall market conditions. The market is just about coming out of a relatively slow phase. But the demand for diesel cars is continuing to go up,” he said.
“Fiat India sales crossed the 18,000 cars mark in 2011 and this number is likely to go up to 21,000 during 2012. December saw relatively lower volumes as most people traditionally wait till new models are launched,” he said.
Launching both Punto and Linea in Andhra Pradesh, Mr Piyush Lall said the new feature-packed models are likely to woo more buyers to the Fiat fold.