Italian automobile company Fiat SpA is likely to increase component sourcing from India almost five times by the end of 2010.It was reported by Mr. Niraj Hans, India head for Fiat’s purchasing office. 

The purchasing office in India is likely to quintuple its global sourcing from India from last year’s €50 million to €250 million by the end of 2010. The company is looking to include purchasing of components for its operations in South America, including Argentina and Brazil, and is in the process of requesting quotes for auto parts for engines, cars, trucks, buses and tractors made at its Argentina plants.

The company is in discussion with possible suppliers and expects a commercial production by vendors by the last quarter of 2009.The move is in line with integration of Fiat’s worldwide sourcing operations, which started in January 2008.

The group has earlier been purchasing components for its small diesel engines from, Poland, Italy and Spain, for more than a year-and-a-half. For the tractor business it was dependent on CNH which is the world’s second largest agriculture equipment manufacturer in the world.

In India, Pune-based RSB Transmissions has secured Rs43 crore order to manufacture gearbox parts and gear sleeves for Fiat’s Argentina operations. This would be for a car that is expected to generate 330,000 units annually by the year 2011.