Is Hinduja buying out Fiat India?

The latest rumors in are just in line with what we speculated some days back. Hinduja Group is considering entering the passenger car segment and Fiat’s loss making Indian unit is what they are going to consider overtaking. Latest reports in claims that the company is very close to finalizing a deal with the heads at the Italian headquarters.

Hinduja group had said in a press statement some days back: “We are exploring opportunities to enhance our relationship with Fiat and passenger cars is one of the options”. They had earlier tried to form a partnership with the Mahindra and Mahindra group. However, it never went forward considering the M&M’s partnership with Renault to launch Logan in India.

The Hinduja group already has a 5 year successful joint venture with Fiat SpA through IVECO. Fiat group has 51% stake in that company. Hinduja’s Ashok Leyland owns the rest. A market analyst said about these rumors in the auto world: “Since Ashok Leyland already has a relationship with Fiat through IVECO, buying out Fiat India, would be the natural way for them to enter the passenger car market.”

Will this move bring about a change in the Fiat’s fortunes in India? Only time will tell…

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