Fiat on Friday denied a magazine report, which said it would close a plant in India as part of a sweeping restructuring of the loss-making Italian industrial giant.

Financial magazine Economy had reported the long-awaited turnaround plan, due to be unveiled next week, would include a plant closure in India and trimming of truck-making facilities in Spain and Italy.

"As far as Fiat Auto India operations are concerned, the company stresses that no decision has been taken," a Fiat Auto spokesman said on Friday, making no comment on other details in the report.

Recently, Fiat Auto had stated that India, Brazil, China and Turkey were its most important markets and that it would
continue to increase its activities in these markets.

Fiat India makes the compact cars Palio and Uno, mid-size Siena, station wagon Siena Weekend and Adventure Diesel at Mumbai's Kurla plant, which has an annual capacity of about 50,000 cars.

The Indian unit has also been making losses due to sagging car sales following strong competition from rival carmakers like Maruti, Hyundai and Tata Engineering.

The Palio is however, currently witnessing a gradual increase in sales following the recent launch of a diesel version.

Additional inputs: PTI