Italian carmaker Fiat has announced to source auto components worth $1 billion from India for its global businesses in 2010.

Mr. Gianni Coda, CEO, Fiat Group Purchasing, Italy said that a 70% rise in the present sourcing from India would be observed. And out of these sourced components, $280 million worth components would be exported while the remaining $800 million would be used for Fiat’s local businesses. India constitutes around 5% of Fiat’s global business needs.

Mr. Coda, addressing the annual meeting of the Automotive Component Manufacturers Association in New Delhi, on Thursday, said that for them it was important to build up a strong supplier base here.

The company would invest locally and also encourage its global partners to invest in India by starting joint ventures.

The company is pacing its efforts in sourcing form low cost markets. For that, Fiat has recently signed a deal with a Chinese company, Guangzhou Automobile Group.

The Fiat Group has also begun a joint venture with the Tata Group, which involves cars and diesel engines, agricultural machinery and tractors, and functioning of Fiat’s own component company Magneti Marelli.

Mr. Franco Cavallotti, Vice President — International, Fiat Group Purchasing said that the company is now open to new projects and partnerships.

Magnetti Marelli, Fiat’s component company, has started joint ventures in the country with component makers, and currently it has more than a dozen projects. Fiat is also open to more partnerships. Fiat has its own purchasing office in Delhi.

Mr. Coda also said that after Fiat’s new partnership with Chrysler, the company will become the sixth largest car manufacturer in the world. He added that Chrysler has bought $38.9 billion and Fiat $45 billion of components and capital equipment.