Automobiles is planning to manufacture a premium sports utility vehicle (SUV
) as part of a Rs 1,500-2,500 crore investment in the country. It will also export these SUVs to countries like the UK, Australia and South Africa in the next two years.
According to a report, the development work for the first premium SUV to be made in India has already been initiated and production of vehicle will begin by 2016. According to industry experts, Fiat's move will give a boost to brand India.
India is gradually transforming itself from a manufacturing hub for small cars to a base for the entire range of vehicles, including SUVs, as companies like Renault
, Nissan and Volkswagen are exporting mid-sized sedans and compact SUVs from India.
"The future is in India whether it is for domestic market or for export manufacturing. Renault-Nissan, Ford
and Maruti all have accepted this fact that manufacturing in India gives strong top and bottom numbers. Exporting a luxury brand from India will definitely be a strong image booster for Indian manufacturing in mature markets, where India always remains popular with small hatchbacks," said Gaurav Vangaal, senior analyst for forecasting at consultancy firm IHS Automotive.