The implementation of new norms for safety and cleaner emission has resulted in carmakers taking drastic decisions. Some brands will discontinue a few models as they cannot be upgraded to meet the new requirements, while some carmakers have decided to call it quits — such as Fiat.
As per SIAM’s report for February, Fiat produced no cars at all from its facility in Ranjangaon. However, the facility is producing vehicles under the Jeep brand, but not one vehicle under the Fiat brand was made.
This is a hint at Fiat getting ready to exit India, similar to what Chevrolet did a few years ago. This is a concern for the dealerships, who have been asked to sell the Jeep-branded products as well. Also, this is an indication that Fiat is not doing good in the Indian market.
Fiat was supplying its engines (1.3-litre diesel) to Maruti Suzuki, however, Maruti has developed a new 1.5-litre diesel engine in-house that will soon be launched. Also, earlier reports say that the investment in upgrading engines to meet BS-VI norms is huge and the company does not feel it's worth doing.