Fiat Auto India is the company's wholly owned Indian subsidiary.
This will be the first time that Fiat India will have an Indian as the head of its business operations. Giovanni occupied the MD's chair for two years.
A company spokesperson said, "According to the norm followed by the parent company (Fiat Auto) of appointing a local head in each of the company's regional operations after three years, Giovanni will be shifted out of India and Rajeev Kapoor will overlook the country's operations from now on."
Under Giovanni, the Indian subsidiary forged a joint venture with Tata Motors to manufacture cars, engines and transmissions for the domestic and export market.
Both companies jointly promised to inject Rs 4,000 crore (Rs 40 billion) in the Rajangaon plant (Maharashtra) for producing 100,000 cars and 200,000 engines and transmissions. Both companies will joint derive benefits from that facility.
Kapoor joined Fiat India in October last year. Prior to the assignment, he was with Hero Honda.
Kapoor will directly report to the board of directors comprising Ravi Kant, who is the current MD of Tata Motors and the chairman of the new joint venture, Alfredo Altavilla who is the CEO of Fiat Powertrain Technologies and senior vice-president business development of Fiat Group Automobiles and vice-chairman of the JV.
Giovanni will continue to be in India for the next three months and will to overlook the company's progress after which he will be sent to Italy.