Fiat's Indian Journey

Credited as one of the founders of the European automobile industry, Fabbrica Italiana Automobili Torino (FIAT) SpA was established in 1899 in Turin, Italy by a group of individual investors. FIAT's automobiles achieved instant popularity, not only in Italy, but also internationally.

Over the next century, FIAT consistently followed a two-pronged growth strategy: penetration of foreign markets and focus on innovation. The innovation strategy fuelled the company's diversification plans into agricultural and construction equipment, commercial vehicles, metallurgical products, components, production systems, aviation, publishing and communications and insurance.

FIAT also acquired the Autobianchi, Lancia, Alfa 164 and Alfa 156 brands over the years. The company also owned a host of popular brands in its other businesses. By 2001, with revenues around 57 billion Euro, FIAT emerged as one of the world's biggest industrial groups, operating in 61 countries with 1,063 companies involved in automobiles. The group ran 242 production facilities and 131 research centers, with almost half of them located outside Italy. As part of its globalization effort, FIAT entered India in 1951 through a technical collaboration with Premier Automobiles Limited (PAL) to manufacture the 'Fiat 500' car. PAL was one of India's first automobile manufacturing companies, established in 1944 by the Walchand Hirachand family...