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Fiat says could make pick-up in India

The Indian unit of Italy's Fiat s.p.a. has begun a market survey to launch a twin-cab pick-up truck in the country, possibly in 2003, a company official told Reuters on Monday.

Fiat India Pvt Ltd, 97 per cent owned by the Italian company, has been in India since 1997 and makes the Uno, Siena and Siena Weekend car models. It also launched its popular hatchback, the Palio, in September.

"It is still a little early, but we have begun a survey and if we think we can sell about 500 to 800 a month we will begin making them here," said an official at Fiat India, who declined to be named.

India's pick-up market is currently small but growing.

Tata Engineering and Locomotive Company Ltd, the country's largest truck and bus maker, also unveiled a 2.8-tonne pick-up cab last week at the sixth biennial automobile fair, hoping to expand the segment with this model.

Telco said sales of light trucks in the two- to four-tonne gross vehicle weight segment, where the pick-ups are positioned, had grown rapidly in the last few years and it expected this trend would continue.

These vehicles are ideally suited for final-leg distribution of products such as consumer durables, beverages and in off-road applications on farms, plantation and construction sites.

The official said Fiat could also consider selling some of its larger cars like the Alfa Romeo 166 or the 147 in India by importing fully built units of these if next month's annual Budget reduced import tariffs on cars.

Last year's annual Budget raised the basic import tariff on cars to 60 per cent from 35 per cent, which taken with other duties, pushes the effective duty to about 120 per cent. Car companies have lobbied with the government to reduce this.

Fiat said it had a 6.81 per cent share of the domestic car market and 17 per cent of the premium hatchback segment, where the Palio is positioned, in December.

It now aims to sell 50,000 cars in 2002 and break-even.

The automaker announced last week it will begin selling a sports version of its Palio hatchback from February and launch two station wagon versions of it later in 2002.

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