Fiat India Automotive Ltd (FIAL), a 50:50 joint venture between Tata Motors and Italy-based car major Fiat, continues to be in the red, though losses have significantly came down from the previous fiscal.
The company- which sells Fiat models Linea and Grande Punto in India - reported a loss of Rs. 86.78 crore for 2011-12 against Rs. 248 crore last fiscal.Although FIAL has managed to bring down its losses, the company has been steadily losing sales volumes and market share over the years.
Selling 17,129 cars last fiscal, Fiat stood at the 10th position in the Indian car market with a market share of 0.67%.
FIAL built a Rs. 4,000 crore plant in Ranjangaon, Pune, with an annual capacity of 1.6 lakh units. The cumulative losses since inception in 2007 are estimated at around Rs. 1,300 crore.
Fiat, which shares 170 dealerships with Tata Motors, launched new editions of its midsize sedan Linea and hatchback Grande Punto.
Two months ago Fiat formed a separate sales company controlled by the Fiat Group to take care of commercial and distribution activities of Fiat-branded cars produced by the JV. Fiat now plans to rev up sales with new models.