Fiat car production down to 0 units – Only Jeep Compass produced by FCA in India

Though there was no production, dealers managed to sell existing stock, which are being offered at heavy discounts.

Fiat sells Punto, Linea, Avventura, Urban Cross and the performance versions of Punto and Avventura in India. Last month, in Feb 2019, 0 units were produced in total under the Fiat badge, reveals Money Control. The reason, the company is getting ready for its exit from India.

None of the existing Fiat cars meet the upcoming emission and safety norms of India. In order to meet these norms, Fiat will have to update their cars. Which means investing money. But, as per sources, the company has decided not to make any further investments under the Fiat brand.

Existing Fiat stock at dealership is being sold at heavy discount.

In the coming months, all new cars sold in India will need to comply with Bharat NCAP safety norms. Majority of car makers have already started updating their existing cars to meet these new norms. Apart from Fiat cars, there will be many more which will be discontinued for not meeting safety norms. The list includes the likes of Maruti Alto, Omni, Gypsy, Tata Sumo, Safari, Mahindra Bolero, Xylo, and so on.

Apart from selling cars, Fiat also sold diesel engines in India. Their 1.3 liter MultiJet has powered almost all the popular diesel cars in India. This includes Maruti Swift, Dzire, S-Cross, Brezza, Ciaz, Ertiga, Tata Bolt, Zest, Indica, Indigo, etc. Both Maruti and Tata pay royalty to Fiat for using their engine.

But as Maruti and Tata get ready to replace the Fiat diesel engine with their own diesel engine, that business model too will die for Fiat in India. With no buyers for their 1.3 liter engine, Fiat has decided not to update their 1.3 liter diesel engine to meet BS6 norms.

What remains for FCA, the parent company of Fiat, is to solely concentrate on the Jeep brand in India. It was only the Jeep Compass that rolled out from the Ranjangaon plant in the past month. The company has upgraded the Ranjangaon facility to be an exclusive Compass hub for the right hand drive markets across the globe.

Obviously Compass will not be the only localized car on offer in India. Jeep India is working on two more made in India SUVs – one will sit below the Compass, and one will sit above the Compass. Both SUVs will launch by 2022. The first SUV, which will be based on Renegade, is expected to debut at the 2020 Auto Expo in India. It will rival the likes of Mahindra XUV300 and upcoming Hyundai Carlino Styx.