Fiat takes Tatas' help to develop small car for India

Italian auto maker Fiat today said it is taking help from its partner the Tatas in developing the small car, which it plans to launch in India by 2012.

"Tatas are our front-end partners in distribution. So we are taking a lot of help from them in taking customer feedback and understanding their needs so that they can be incorporated into the small car," Fiat India Automobiles President and CEO Rajeev Kapoor told PTI.

The technical development of the car, however, is being done by Fiat in Italy, he added.

In 2006, Fiat and Tata Motors have formed a 50:50 joint venture — Fiat India Automobiles — under which the the Italian firm sells its products through the distribution

Network of its Indian partner, while sharing its manufacturing facility at Ranjangaon in Maharashtra.

The foreign auto major had yesterday announced that it was developing a small car at its home ground to cater to the Indian market.

"The small car is expected to be launched in India by 2012 and it will be manufactured at our Ranjangaon plant," he said.

Kapoor said the car could be similar or smaller than its existing hatchback Palio.

Asked if the car will be sold only in India, he said it is too early to say but exporting to other similar markets like India cannot be ruled out.