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Fiat to restrict Uno sales in Delhi, hike price by 1999-end, keep other models off India

Ind Auto Limited has decided to restrict till 1999-end, sales of the Uno in the National Capital Region within the prescribed limits of the Supreme Court as the car would be made Euro-II compliant only by year-end.

Ind Auto's Executive Director Gianni Ravina also hinted at a possible hike in prices of the Uno by the year-end. Ind Auto is a joint venture between Fiat and Premier Automobiles Limited.

However, the company's next roll-out in India -- the Siena -- would not be affected as it already meets the Euro-II norms. ''The petrol version is already Euro-II compliant while with slight modifications, the diesel version would also clear the norms,'' he said. The price tags of the Siena would not be altered.

Meanwhile, the effort to make the Uno Euro-II complaint would mean a Rs 20,000-30,000 hike in production cost per vehicle and this would effectively translate into a hike in the price tag of the vehicle. ''But the exact quantum of hike is yet to be finalised.''

Ravina said the company had initially planned to make the car Euro-II compliant by April 1, 2000, but with the advancing of statutory date by the apex court, the company is now working hard to make the car pass the norms by 1999-end.

''Our technology department is working towards this end and we are confident of achieving it by the year-end. Till then, we will have to restrict sales within the region under the limits prescribed by the court.'' The apex court had directed that only 1,250 petrol vehicles and 250 diesel-driven vehicles conforming to Euro-I norms be registered per month in the NCR on a first come first serve basis from July 1, 1999.

''The court's decision has been sudden and we can not keep pace and change the engine overnight...It is not a toy.''

Though Ravina stated that the pull-ahead of the effective dates for meeting Euro-II norms has been sudden, he favoured the move terming it ''a step in the right direction''.

He further said that the government should alongside make efforts to improve the quality of fuel available in India. ''Even if we improve the technology and make them Euro-II compliant, the question is for how long could it be sustained with the present fuel quality. Quality of fuel is the principal issue and the government should address this.''

Meanwhile, Ford India's MD Phil Spender said clean air can be achieved in a joint effort by the government and industry. ''Ford and many other automobile companies can provide the latest technology. However, the government must ensure provision of high-quality fuel. It is the joint responsibility of manufacturers, petroleum industry and the government to find long- and short-term solutions.''

The Supreme Court had recently directed that all private non-commercial vehicles conforming to only Euro-II standards will be registered in the NCR from April 1, 2000. It had further stated that all vehicles have to conform to the Euro-I norms by June 1, 1999 failing which they will not be allowed to be sold.

In a related development, Fiat SPA of Italy has said it is not in favour of introducing some of its leading automobile models like Ferrari and Alfa Romeo in the Indian market.

''India does not figure in the list of countries where we intend to introduce these brands. Although we constantly keep exploring new products for the Indian marketplace, Ferrai and Alfa Romeo do not figure in the list of models,'' said Ravina, also the managing director of Fiat India Automobiles Private Limited, a wholly-owned subsidiary of Fiat SPA.

Both Ferrari and Alfa Romeo have vehicles positioned in the high-end segment of the automobile industry. ''It does not make good business sense to introduce these models here without a good and viable market. It would not give us volume sales to even commence import and sale of completely built units of these cars,'' Ravina said.

''For bringning these cars to india, we have to ensure that a good service back-up is in place and the volumes would not justify making such huge investments,'' he added.

However, the company is contemplating intoducing the van, which would be produced under the world car project, in India. ''It is just a thought and no final decision has been made on the same as yet.''

Under the project, Fiat would be introducing a family of five cars sharing the same platform and a number of major components. The modular project consists of the Palio Hatchback, the Siena Saloon and the Palio Weekend Station Wagon, all three of which will be manufactured in India. The other two members of the family are a pick-up version and a van.

While the Siena would hit the city streets this month, the Palio and Palio Weekend would be introduced by the year-end.

On the roll-out schedule for the Palio and Palio Weekend, he said the vehicles would be rolled out within a gap of two to three months. ''So far, we intend to launch the Palio first, to be followed by the Palio Weekend...But depending on the market conditions and plans of competitors, we can alter the plans.''

Though the final tags for the two vehicles have not been finalised as yet, the Station Wagon is likely to be priced almost Rs 100,000 costlier than the Hatchback.

Under the world car project, Fiat is also planning to locally manufacture in India the engines and transmissions of the Siena, the Palio and the Palio Weekend.

This is as part of the company's plans to achieve total 95 per cent localisation in India with the world car project, Ravina said.

UNI

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