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The Indian unit of leading Italian car maker Fiat stated on Wednesday that it is planning to export its cars to neighbouring countries including Nepal, Bhutan and Sri Lanka by the end of this year. With this, the company will also be exporting its cars to Bangladesh by year 2011. It is to be mentioned here that the company has already started exporting its cars such as Fiat Linea, Fiat Punto and Fiat Palio to the South African market. According to a statement given by a company official to a leading Indian news daily, the company sees opportunities in the neighbouring markets for its products, specially Sri Lanka, where the government has thrashed the import duty on new cars. The government of Sri Lanka has thrashed the import duty on new cars to 117 percent from massive 200 percent earlier.

Fiat India currently has a partnership with Tata Motors in the Indian market and both the companies share the manufacturing facility at Ranjangaon in Maharashtra. However, the facility remained underutilized due to the slowing down demand for Fiat cars in India, in last few years. With this, both of the companies also use a common distribution network across India. It has been over three years since the Tata Motors is in partnership with Fiat group, but the partnership hasn’t performed up to the expectations despite having two of the most competitive cars in its India portfolio including sedan Fiat Linea and hatchback Fiat Grande Punto.

Meanwhile, Tata Motors is mulling to revitalise its joint venture with Fiat in the Indian market in a bid to boost the sales of the both of the companies. The company is eying to enhance the product line of Fiat group in the country along with the adoption of the new engine and transmission technologies.