Fiat India Increases localisation from 55% to 65% on making the Linea

shineshine · 23rd April 2009, 13:34

As per Business Standard,

Quote:

Auto major Fiat today said it has increased the localisation of components in its vehicles to 65% from the earlier 55%.

"All our plans are falling in place and we are confident of achieving 86% localisation on the Linea by the end of this calendar year," Fiat President and CEO Rajeev Kapoor said in a release here. "By the first quarter of 2010, the Linea will be 91% localised," he said.

The localisation plan is being carried out to save on import duties, which are passed on to the customer, the leading carmaker said.

So its likely the localization will be benefiting more to GP rather than Linea

rajneeesh · 23rd April 2009, 15:06

Fiat has taken a lesson from the Maruti practice of "invitation prices". A reduction in cost need not mean hat the prices come down. It means that the company makes more money

sharma_sanjeevi · 23rd April 2009, 17:04

Quote:

Originally Posted by hillram

This is great news.I wonder Grande Punto will be launched at a cheaper price.

I also wish, that GP should be launched at a cheaper price, considering the localisation factor & sharing of parts bin between Linea & GP.

Keeping the fingures crossed for the launch & specially for price factor

amtak · 23rd April 2009, 17:13

The million $$$ question is when is the GP coming? Ritz arriving next month (confirmed to me by a sales rep.) and the Jazz in june.

sharma_sanjeevi · 23rd April 2009, 17:15

Quote:

Originally Posted by amtak

The million $$$ question is when is the GP coming? Ritz arriving next month (confirmed to me by a sales rep.) and the Jazz in june.

I visited TATA-FIAT showroom, enquiring about the GP, the sales representative told me that "Sir, June ya July mein aana chahiye", he had no information till now.

But lets hope it arrvies till June End.

MileCruncher · 23rd April 2009, 17:24

Way to go for Fiat! Only hope that the quality of parts don't come down.

narayan · 23rd April 2009, 17:27

Is the Ritz same size as GP/JAZZ ? i thot it was much smaller.

anyway coming to the topic - localisation is always good from the total cost of ownership point of view. But hopefully the cars are well built that one would not need to worry about spares in the first place

Steeroid · 23rd April 2009, 17:35

Quote:

Originally Posted by JayD

But why the price increase after this move?? Shouldn't the opposite happen??

My question exactly - they announce an increase in localization of parts, followed immediately by a price hike.

dont you find this really strange?

MileCruncher · 23rd April 2009, 17:53

Quote:

Originally Posted by Steeroid

My question exactly - they announce an increase in localization of parts, followed immediately by a price hike.

dont you find this really strange?

Well as much as my knowledge of automotive production goes, whenever a company gets a new vendor for a part, company has to guarantee offtake from the vendor a certain number for the initial 3-4 years based on which the vendor will invest in tooling. Lot of times automobile manufacturers (I don't know why we call them that as they are mainly assemblers) even have to pay the first 6-12 months offtake in advance which is a drain on the budget of the company, so they quitely increase the price by a few thousands. Later on when the supplier becomes permanent and the quality is assured and numbers also stabilised, prices are always rolled back. Product LifeCycle Management of the car also plays a crucial role in the extent of price rise in the product.

If there is any body from Vendor Development or Purchase in automotive sector please correct me, If I'm wrong.

Prash · 23rd April 2009, 18:50

Quote:

Originally Posted by Mr_Bean

With Tata being right along with Fiat, I am quite worried about the quality of plastics & other parts used in the car. This will have its say in the long run.

I happened to test drive the demo car of the indica vista diesel & the quality of plastics were pretty bad. gearbox is sourced from fiat, can someone comment. Is the car little sluggish to start with?

Tata is no where in the making of Fiat cars. Indica Vista is made in Fiats Ranjangaon plant but Tata is not at all involved in design n development of any Fiat product.

And I dont think Vista (diesel) is sluggish at all. I have test driven it and i dont feel so at all.

FastLove · 23rd April 2009, 19:29

Very Good and Important news for all especially FIAT owners ! i happen to be a new member for them

Way to go FIAT !

superbhikari · 24th April 2009, 01:21

Grand Punto launch in second week of May, Price - Petrol starts at 4L and diesel at 5L. Source - Zee News

siedo · 24th April 2009, 08:03

May be not the right time for price reduction in product life cycle (soon after launch).
But increase is also not justified.

GTO · 24th April 2009, 13:10

A higher level of localisation indicates the company's confidence in the market viability of its product, as well as it's commitment to the market. Step in the right direction, Fiat.

Linea owners should also benefit from lowered spare part prices in that case. My only worry is that the quality shouldn't suffer.

23rd April 2009, 15:06	#17
rajneeesh Senior - BHPian Join Date: Apr 2007 Location: noida Posts: 1,114 Thanked: 542 Times	Fiat has taken a lesson from the Maruti practice of "invitation prices". A reduction in cost need not mean hat the prices come down. It means that the company makes more money
	() Thanks

23rd April 2009, 17:13	#19
amtak Senior - BHPian Join Date: Oct 2006 Location: Mumbai - The city of Sea Link!!! Posts: 2,915 Thanked: 901 Times View My Garage	The million $$$ question is when is the GP coming? Ritz arriving next month (confirmed to me by a sales rep.) and the Jazz in june.
	() Thanks

23rd April 2009, 17:24	#21
MileCruncher Senior - BHPian Join Date: Jan 2009 Location: MH01 Posts: 4,235 Thanked: 592 Times View My Garage	Way to go for Fiat! Only hope that the quality of parts don't come down.
	() Thanks

23rd April 2009, 17:27	#22
narayan Senior - BHPian Join Date: Aug 2006 Location: Singapore Posts: 3,114 Thanked: 2,372 Times View My Garage	Is the Ritz same size as GP/JAZZ ? i thot it was much smaller. anyway coming to the topic - localisation is always good from the total cost of ownership point of view. But hopefully the cars are well built that one would not need to worry about spares in the first place
	() Thanks

23rd April 2009, 19:29	#26
FastLove BHPian Join Date: Mar 2006 Location: MUMBAI Posts: 416 Thanked: 99 Times	Very Good and Important news for all especially FIAT owners ! i happen to be a new member for them Way to go FIAT !
	() Thanks

24th April 2009, 01:21	#27
superbhikari BHPian Join Date: Jul 2008 Location: Muzaffarnagar Posts: 465 Thanked: 228 Times	Grand Punto launch in second week of May, Price - Petrol starts at 4L and diesel at 5L. Source - Zee News
	() Thanks

24th April 2009, 08:03	#28
siedo BHPian Join Date: Dec 2008 Location: Pune Posts: 129 Thanked: 15 Times	May be not the right time for price reduction in product life cycle (soon after launch). But increase is also not justified.
	() Thanks

24th April 2009, 13:10	#29
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,546 Thanked: 300,789 Times View My Garage	A higher level of localisation indicates the company's confidence in the market viability of its product, as well as it's commitment to the market. Step in the right direction, Fiat. Linea owners should also benefit from lowered spare part prices in that case. My only worry is that the quality shouldn't suffer.
	() Thanks