More than a hundred years after the Italian carmaker first arrived in Sri Lanka, Fiat was re-launched this week on the island, with ambitious plans in hand to claim a 2.5 percent share of the market by the end of this year. Fiat is in fact the oldest car manufacturer on Sri Lanka and at the launch, the oldest car on the island, also a Fiat model, was present the Turinese brand was re-introduced.

Euro Motors (Pvt) Ltd will act as the importer and they are set to bring in three important and current Fiat models: the Panda, Doblò and Grande Punto. Euro Motors is targeting selling 600 Fiat vehicles this year in Sri Lanka, a result which would equate to around a 2.5 percent share of the total projected market. The B-segment Panda, the 2004 'European Car of the Year' award-winner, will be priced between Rs 2.6 million and Rs 2.8 million; the Doblò, which received the accolade of 'European Van of the Year' for 2006, and which will come in van and people-carrier versions is to be priced at Rs 2.9 million. The B-segment Grande Punto hatchback is to be priced at between Rs 3.4 million to Rs 4 million.

There is strong potential to be explored in the Sri Lankan market as statistics announced at the launch by Giovanni Cenere, Fiat's Regional Manager for the Asia Pacific area reveal that 12 out of ever 1,000 Sri Lankans own a car as opposed to 7 out of every 1,000 people in their near neighbour India. The choice of models to be sold is also interesting as the Panda and Grande Punto are currently not offered in India, although the potential to launch them there has been explored. The Grande Punto will enter full production in India during the second half of 2008 and Euro Motors will source this model from the Fiat-Tata plant at Pune then.

Fiat has a long history on the Indian Ocean island, first entering the local market in 1903 when their cars were imported by Colonial Motors. From 1973-76 Sri Lankan businessman Upali Wijewardene briefly assembled Fiat models on the island. Wijewardene is one of the nation's most famous entrepreneurs, and as well as assembling Fiats and Mazdas at his factories in Homagana, he founded the country's first airline and helicopter service, owned two important newspapers and a string of consumer product manufacturing enterprises.
 

He was also an enthusiastic racing driver, race horse owner and dog breeder, before he disappeared in mysterious circumstances in 1983. After Wijewardene's venture Colonial Motors retained the Fiat franchise through until 1993 before Premier Automobiles took it over, in turn passing the importership rights to Euro Motors two years ago.

Cenere told reporters on Monday that the demand for new cars in Sri Lanka is dependent on a number of factors. The key variables are per capita income, introduction of new models, availability and cost of car financing schemes, price of cars, incidence of duties and taxes, depreciation norms, fuel cost and its subsidization and the provision of public transport facilities etc. The relationship between Fiat and Sri Lanka is over one hundred years old, he said.

The range of new models were launched by Euro Motors at a ceremony on Monday held under the auspices of the Italian ambassador in Sri Lanka, Pio Mariani. Euro Motors showcased the Panda, Grande Punto and Doblò, saying that this trio of models will encompass unique customised features that will be created specifically for the Sri Lankan market. The range will be bolstered when Fiat Linea is expected to arrive in Sri Lanka late next year. Euro Motors Chief Executive Officer Mahinda Jayaratne said that his company is looking forward to a strategic partnership with Fiat both for its enhanced business potential and for the exciting possibilities for potential car buyers in Sri Lanka.