Fiat India is set to increase its capacity utilization at its manufacturing facility at Ranjangaon in Maharashtra from 70 percent to its optimal level. The facility currently produces cars and engines and also caters to engine requirements from Tata Motors and Marut Suzuki. The increase in production especially of that of its diesel engines will depend upon the market demand, states Mr. Piyush Lall Assistant General Manager Tata Motors Limited.
Fiat India is a 50:50 joint venture between Italian automaker Fiat and Indian auto manufacturer Tata Motors. According to Mr. Lall, the demand for diesel powered cars in increasing in India despite the slowdown in the auto sales and the company is expecting its engine production to reach optimum level.
Fiat India has agreed to supply 3,00,000 diesel engines by 2015 to Maruti Suzuki which plans on increasing its diesel car portfolio in India. This would further increase the diesel engine production at Fiat’s engine manufacturing facility.
