Despite the fact that about 75% of all cars sold in India are small cars, Fiat S.p.A. believes that there still is a lot of space in the segment and so plans to unveil a small car there by 2012.
At the Delhi auto show, Rajeev Kapoor, president and chief executive of Fiat India Automobiles, said that the company will definitely exploit that opportunity.
Moreover, Volkswagen AG will be launching a sedan version of its Polo subcompact in India this year. Renault SA seeks to offer a full range of models from minicars to luxury cars in Indian within the next 2 years.
Just last Tuesday, Toyota Motor Corp. unveiled its new car for emerging markets at the New Delhi Show. The low-cost Etios compact car is set to go on sale in markets such as India, Russia and Latin America in order to tap the fast-growing Indian market dominated by Maruti Suzuki and Hyundai Motor Co.
Kapoor also said that the small car will be developed overseas and it will be positioned below the Palio compact and Grande Punto subcompact it already sells in India.
Fiat aims to launch three variants of its existing models this year and a car that can use multiple fuels.
With these new models, Kapoor said that he expects its India sales will double in 2010 from 23,000 units sold in 2009. The Indian unit has a target to export 10% of its total sales in 2010 to countries such as South Africa, Sri Lanka, Nepal and Bhutan.