Fiat to launch Palio diesel in March

Car-maker Fiat India is to launch the much awaited diesel version of its Palio after the announcement of Budget in March while it has temporarily kept "on hold" the multi-purpose van Doblo.

"We have had total sales of 32,000 units in 2002, 90 per cent of which were Palios, (13,500 units in 2001) with a five per cent market share. We are looking at sales target of 50,000 units for 2003 with the diesel version", Fiat India chairman and managing director M P Bianchi told PTI in Mumbai on Friday.

Bianchi, who is handing over charge to Alberto Montanari on January 27 and leaves for his new assignment at Fiat Auto, Italy, said the domestic market conditions along with the international environment, coupled with the rising fuel prices, had affected the auto sector.

Asked if Tata 'Indigo', launched last month by Tata Engineering, had an impact on the company's sales, Bianchi said, "It is too early to say but we have to wait and see. Indigo may not affect us though the price was competitive", he added.

On the roll out of "Doblo", he said the van was still undergoing clinical trials and tests and "we are yet to decide as to when to introduce it in the market".

Bianchi said production at the Kurla plant, which has a capacity of 65,000 units per annum, has reached the half-way mark with 36,000 units on the 178 platform.

"Once we launch the diesel version we intend to ramp up production and hope to garner eight per cent market share", he added.

Whether Formula I world champion Michael Schumacher and cricketer Sachin Tendulkar, the brand ambassadors, have helped in sales, Bianchi said, "It is difficult to say about the impact on our sales but it has helped to change the image of the company".

"Bringing them together in the summer at Silverstone circuit for me was an emotional one", he added.

Montananri said though he was going through the grind of studying the conditions here after his stint in South Africa Fiat Group was committed to India, as it is one of the four business strategic markets apart from China, Brazil and Turkey.