India Manufacturing Talk

Fiat India – 85% Localisation of Grande Punto

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• Author: Nikhil
• June 21, 2009
• Category: Automotive

In a recent press release Fiat India announced that they are targeting 85% localisation of parts for their Grande Punto model by 2009.  Currently the Fiat claims to have achieved localisation of 60%.   The 85% target would give Fiat room to leverage prices to aggressively sell the Punto.  The Grande Punto is currently priced between Rs 3.99 lakh – Rs 6.11 lakh.

With the high import duty costs localisation is a priority for most car manufacturers given the manufacturing infrastructure available in India.  Fiat India plans to manufacture the Punto at their Ranjangaon plant near Pune.  The production of the Punto would no doubt help develop local manufacturing with 70,000 cars planned for 2010 and 2 lakh cars planned for 2016.

Some information about Fiat India:

• Fiat India Automobiles Limited (FIAL), a 50-50 Industrial Joint Venture between Fiat Group Automobiles S. p. A., (Fiat) and Tata Motors Limited (Tata), employs about 2207 blue & white collar employees and is located at Ranjangaon in the Pune District of Maharashtra.
• FIAL’s manufacturing facility at Ranjangaon is capable of producing 200,000 cars and 300,000 engines, besides 3,00,000 parts & accessories. Currently manufacturing the Palio Stile 1.1, 1.3, 1.6 models, Linea and now the Grande Punto. The facility also manufactures Fiat’s successful 1.3 litre Multijet diesel engines and 1.2 & 1.4 litre Fire gasoline engine.  Apart from Fiat cars, the facility will also produce Tata passenger and next generation cars with investment exceeding € 650 Million. The plant provides direct and indirect employment to more than 4,000 people.
• By the end of the year the facility is expected to start manufacturing Tata Motors’ new sedan built on the ‘Vista’ platform.
• Fiat Powertrain Technologies, the Powertrain facility at Ranjangaon has an installed capacity to produce 200,000 1.3 diesel engines, 100,000 1.2 & 1.4 petrol (FIRE) engines and 300,000 transmissions. All these products are assembled on state of the art assembly lines which have a high level of automation for all critical operations.  Testing of the engines and transmissions is carried out on Cold Test benches which, besides performing in depth checks not easily achievable in traditional Hot Tests, are also environmentally friendly.
• Machining of critical components like cylinder block, crankshaft, cylinder head, cam carrier, transmission shafts and gears is done on the latest CNC machines with a very high degree of accuracy and automation. Sophisticated inspection equipment ensures that the quality of the components is of the highest level.
• Engines and transmissions are coupled to form Powertrains, which are supplied just in time to the car plants.

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