A lot of us would remember Fiat’s Uno which was launched in 1990s in India and received a pretty strong response initially before fizzing out later.
Uno was brought to India as CKDs (Completely Knocked Down units) and SKDs (Semi knocked down units). There are many people we can find who still vouch for the durability of the car. There were rumors of Fiat launching the new Uno in India but nothing concrete has turned up yet.
Meanwhile, there is an interesting piece of news we have landed upon. It says that Fiat sold Uno in India at a tremendous loss per unit just to penetrate in the market. The cost of production of a single car was Rs 3.8-3.9 Lakh whereas the assessable value of the car was Rs 1.85 Lakh.
This amounts to a loss of almost 100% per unit which Fiat incurred just to ensure they reach and penetrate a mass market back in 1990s. This also highlights the fact the level at which companies go to ensure good business.
This fact was revealed when Fiat lost a decade old case with Excise Department which now warrants the company to pay Rs 432 Crore as duty on the Unos sold between 1996 and 2001.
Source: Times of India