Fiat India Automobiles Limited (FIAL) is planning to launch a low-cost, small car in India by the year 2012. The car will be produced at Fiat’s Ranjangaon facility near Pune, which also produces the Palio and the Linea. It will have the Tata Indica, the Maruti Suzuki Alto and the Hyundai Santro as competitors. Fiat is also considering adding the 1.6-litre Multijet diesel engine to its Ranjangaon assembly line (along with the already-in-place 1.3 litre Multijet).
The 1.3 litre Multijet diesel engine is currently being used in the Palio, the Linea and the Tata Indica Vista. Also, if reports are to be believed, it will soon be supplied to GM’s Talegaon plant, though Fiat’s representatives have refused to confirm this. Maruti Suzuki is already producing the 1.3L multijet at its Manesar plant as part of a licensing pact with Fiat.