In the wake of demonetization, automobile industry has already seen a 16 year low in sales growth. One such effect was also seen on Fiat’s production in Pune last month. The Fiat Chrysler Automobile plant at Ranjangaon had to be shut down due to zero production.
The company is planning to produce Jeep Compass SUV in the same plant. The company had produced 1,276 units of cars in October-November 2016. Due to cash crunch in the economy, the stick was left unsold. As a result there was no new production in the month of October-November 2016.
Currently the company sells 4 models of Fiat - Linea, Avventura, Punto and Abarth 595. The sales of the company have been dismal despite the fact that they had announced a price cut of INR 77,000 on the Linea and Punto Range.