Fiat is on the progress path in India and one more step taken by the company is its effort to increase localisation. At the start of production the company had achieved 55% localisation and within a short span of four months it has been able to increase it by 10%. Fiat’s flagship car, the Fiat Linea is now manufactured with a total localisation of 65%. However, we don’t understand why Fiat India hiked the prices of the Linea, if they increase local content in the car.

“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. By the first quarter of 2010 the Linea will be 91% localized. This achievement has been made possible due to the highly motivated team within the organisation,” Mr. Rajeev Kapoor , President & CEO said.

The aggressive localization plans for the Linea & the future models will ensure massive savings on import duties which will be passed on to the customer. Also on account of the huge local content the availability of spares at competitive prices much below the competition has brought down the cost of ownership of Fiat cars.