The Times of India reports that Fiat has decided to make India a low-cost R&D hub for its global operations. The newspaper report said that the Indian arm had already been commissioned to develop cars for its operations in China and Italy, citing Fiat India officials as source.

"Fiat is there to stay in India and we will take full advantage of the benefits of the market. In the new scheme of things, Fiat India is fast emerging as the R&D export hub for Fiat's global operations," the official said at the ongoing Frankfurt Motor Show.

The report said that while he refused to divulge details and specifics about the model, sources in Fiat India said though the car was being developed initially for the international market, it would also be rolled out in India later. A Fiat India spokesman added: "There are around 70 engineers in this new research team in India, which will help us transform the Indian unit into an R&D hub for Fiat worldwide."