Fiat enters India

Fiat enters India

NEW DELHI (AFP): Indian government yesterday cleared a plan by Fiat SpA of Italy to manufacture a passenger car model in India, a government spokesman said.

The spokesman said Fiat will hold a majority stake of 74 percent equity in the joint venture company which has local Premier Automobile Ltd. as the partner.

"The project will be to make a new passenger car in India," he said. Fiat SpA has already an existing agreement with PAL to make its Uno models here.

Another passenger car maker, Daewoo Motor Co. Ltd. was allowed to increase its equity stake in the joint venture with India's DCM Ltd to 49 percent.