Can FIAT Re-Establish Itself in India?

[cooldhaya]

Guys, got a call from TATA-FIAT A.S.S. Fortune Motors (where I give my car for servicing) that they are having a free campaign wherein they will come over to my place & do a free 12 point check up on my car & if engine oil, coolant, windshield washer etc. needs to be topped up, they will do it. They informed me that it will take only 20 minutes.

I again re-confirmed with the lady on the phone that it is a free service. I wonder why FIAT is doing this. Is it actually free?

I highly appreciate this gesture from Fiat and my respect towards this manufacturer keeps increasing with each passing day. Please post such things in forums like these to tell how Fiat is actually doing a good job even if associated with TATA!


BTW can you confirm if this is from your specific dealer for specific cars or for all Punto owners regardless of where they purchased the car?

 

[raj_5004]

My wild guess is that they are getting the real picture or analyzing on how TASS has treated your car and in turn whether to setup their own A.S.S in India or not.

I got a call from Fortune cars who is a dealer, and not from FIAT.

If I’m not mistaken, random inspections are performed from manufacturer’s headquarters and luckily, your friend was one.

Ohhh, never knew such a thing happens.

To please existing customers? This is a good move though, but I hope Fiat also invests on things which are more important for them right now.

So you mean FIAT has directed Fortune cars to do this.

The first thing that the lady asked me when she called was "Do you live in Powai". When I replied in affirmative, she explained me about the deal. Fortune Motors is also in Powai. So could be that FIAT has addressed each A.S.S. to have this campaign done for the customers situated near to their A.S.S.

I highly appreciate this gesture from Fiat and my respect towards this manufacturer keeps increasing with each passing day. Please post such things in forums like these to tell how Fiat is actually doing a good job even if associated with TATA!

FIAT does a lot of things but as Vibs mentioned... they should do what more important... set up their own A.S.S.

BTW can you confirm if this is from your specific dealer for specific cars or for all Punto owners regardless of where they purchased the car?

I can confirm this on Monday when they come over to my place for the check up.

 

[Thetraveller]

This is a great initiative if done all across dealers. Small niceties from a big maker when they need to do something drastic

 

[350Z]

This news comes as a good omen for most of the prospective Fiat buyers and enthusiasts: http://www.theautomotiveindia.com/f...ting-up-separate-sales-service-network-4.html.

Drive Safe,
350Z

 

[visran]

FIAT INDIA's New Game Plan

The Italian major aims at success in India yet again but with new strength from Chrysler. Here’s looking at the Fiat-Chrysler Group’s car and SUV gameplan.

Enrico Atanasio, Fiat India’s chief, who is in his mid-50s, recently undertook a whirlwind tour of Trivandrum, Bangalore, Chandigarh, Delhi, Mumbai, Ludhiana, Ambala, Patiala and Pune to get a first-hand understanding of the Indian market. This will also ensure that not everything is Greek for this executive who was the MD of Fiat Greece in his previous role.

Atanasio, who is set to be the managing director of the restructured Fiat India subsidiary, wants to get a real-world feel of the market and relay feedback to headquarters. Atanasio says, “Before my arrival, the Group was relying on some contacts, maybe sporadic, which does not give justice to the complexity of the country.” Whether that affected India’s performance here is debatable. “I have the responsibility to translate for my colleagues what the peculiarities and commonalities are in India,” he adds.

Atanasio also has more opportunities to grow Fiat India’s business compared to the earlier expats who come to steer Fiat India. For starters, Fiat has Chrysler’s portfolio and its engineering resources to fight the battle. Fiat’s situation in India is a bit peculiar. Wherever Fiat has a plant, it enjoys a market share of over five percent. That has not been the case here despite being in India for 15 years. But things may change with Chrysler, and its brands, being available for the Group to enhance its marketshare. “There are brands that are supposed to play a worldwide role – Alfa Romeo, Abarth, Fiat, Chrysler and Jeep. Those brands will be considered as options (for India),” says Atanasio. The Fiat team is now on overdrive to put the infrastructure in place to enhance Fiat’s marketshare, which is now 0.5 percent. The parent company’s target is six percent of the global market. “To achieve that, the Group will have to grow at 4-5 percent annually,” says Atanasio. “At present, we have more than 10 percent in North America, close to 10 percent in Europe, and more than 20 percent in Brazil,” he adds.

Brand perception

Fiat may not be performing to its full potential in India but it still has a fair amount of brand pull, the company believes. “When we announced the end of the joint retail arrangement (on May 2), we opened a link into a site for prospective dealers to apply. Within a month, we received 740 applications,” reveals Atanasio. Fiat currently has one independent dealership each in Delhi, Hyderabad and Pune. The plan is to set up “close to 80” dealers by March 2013.

Fiat has indicated that it will look at models from its current portfolio, rather than develop a specific model for India. The Uno and the five- and seven-seater versions of the 500L are likely candidates. Fiat is trying to re-establish itself as a premium brand offering Italian virtues of advanced design and technology.

Fiat has begun working on launching a Jeep SUV, most likely the Grand Cherokee, in India. “For a market where the SUV segment is developing, there is one strong candidate – Jeep – which has enormous brand equity,” says Atanasio.

The SUV segment promises to be a competitive one. The Renault Duster received 10,000 bookings within a fortnight of its launch. M&M’s XUV500 had received 25,000 bookings in its first booking period. A new range of small SUVs ranging from the Premier Rio BS IV diesel (with Fiat’s 1.3 Multijetengine) to the Ford EcoSport are set to hit the market starting August.

Cars apart, Fiat’s 1.3-litre Multijet engine is in high demand. Around one-third of the diesel passenger cars on Indian roads run on Fiat engine technology, says a senior company official. He also adds that the 1.6, 1.9, and 2.0-litre Multijet versions are being considered for India.

The 1,200 engineers at Chrysler India Automotive, Chrysler’s global R&D arm, and Fiat’s small R&D centre at Ranjangaon, near Pune, with 35 engineers will be key in fuelling the Fiat Group’s offensive in India.

INTERVIEW WITH ENRICO ATANASIO, HEAD — COMMERCIAL, FIAT INDIA

How are you going to leverage Chrysler to Fiat’s advantage in India?

Chrysler’s engineering and development centre in Chennai is serving all the Fiat and Chrysler Group’s regional offices in the world. That group is working very hard to ensure the future of the business, because you don’t write the future of the car business in the same year. You write it 10 years in advance. So that is one of the leverages that we will be using, as we are now the seventh biggest group in the world. It will support the development of Fiat in the region.

We also have an R&D centre at Ranjangaon, which used to support Fiat before Chrysler became part of the group. Overall, the expertise in Chennai is spread across all sectors because they work on the entire R&D spectrum.

Would Fiat develop a product for markets like India and China?

To develop a product, one needs reasonable volumes. For now, we are very strong in the small segment. You may know that we have 4-5 products in this segment and can find a suitable one for India. So, for the moment, I don’t see a dedicated product. India is becoming less and less a closed market. Therefore, it is time now to bring to India all recent technologies.

Will you relaunch the Uno brand as it enjoyed good brand equity in India?

We are considering all the options. The Uno has done well in India and I’m not surprised that the company plans to launch it again in some countries.

Do you think that first-hand understanding of the market was the missing link for Fiat in India earlier?

Fiat’s decision to send somebody from Europe, to live here, understand and translate for the Group, I think, is a courageous and brave decision. Before my arrival, the Group was relying on some contacts, maybe sporadic, which did not do justice to India. India is not one country. It is a combination of cultures that you need to properly understand if you want to address it seriously. So, this effort is there.

Customer clinics were held for the Grand Cherokee in India, when Chrysler was with Daimler. But it didn’t result in a launch. Is the model a good candidate for India now?

I think those times were not exactly the right times but I believe the time is interesting now. It would be the perfect candidate, in terms of the value of investment, value of the brand, value of the product. There is no reason why the product can’t come to India. There are some products that you can consider absolutely iconic in the market. At the moment, Jeep products are in short supply because we have such a strong demand worldwide. I have to be very persuasive to bring Jeep here.

Autocar Professional

 

[Raja]

Re: FIAT INDIA's New Game Plan

Hope the new head creates magic for fiat India and bring some stylish products in India.

 

[THE XOVER]

In a nutshell my answer would be YES.Well not because Indians love Fiat brand,no but just because of the merit of their products.But its going to be an agonizing journey for Fiat and their fans.However one thing is sure this time around that Fiat are here to stay and fight it out rather than Quit like their previous Indian innings.

 

[powerpacked]

Hope the new head creates magic for fiat India and bring some stylish products in India.

+1 to Raja,
These products must be in term of CAR not the engine.
We have seen the magic of FIAT engines since ages now we want more cars.

In a nutshell my answer would be YES.Well not because Indians love Fiat brand,no but just because of the merit of their products.But its going to be an agonizing journey for Fiat and their fans.However one thing is sure this time around that Fiat are here to stay and fight it out rather than Quit like their previous Indian innings.

In earlier days INDIA as brand was struggling in global market thus some of the global players decided to enter in India but decided to quit because various reasons from the Indian market Fiat is one of them.

Now the scenario has changed.We Indians have proven enough economical strength that most of the global players want to earn money out of Indian market by offering their current portfolio to us not the end of lifecycle products.

 

[jayadev]

I dont see any potentials for fiat in near future. There are far better brands with great reputation around in India.

 

[jayadev]

Supreme Court Orders Fiat India To Cough Up Rs.400 Crores

Supreme Court orders Fiat India to cough up Rs 400 crore as excise duty

MUMBAI: In a major setback to Fiat India, the Supreme Court, in an order on Wednesday, set aside a tribunal order and directed the Italian car maker to pay close to Rs 400 crore as excise duty.

The case pertained to the joint venture between Fiatand Premier Automobiles which existed in 1996. Fiat was importing CKD kits of its popular Uno hatchback cars, and selling them in the market at much below its cost price.

The tax authority had levied excise duty on the cost of manufacturing Uno hatchbacks in India between 1996 and 2001. The company contested the excise department's charge to pay duty on the cost price.

The Italian car maker and its Indian joint venture partner contested this by arguing that the selling price was lower than the cost price, and therefore, paid lower than assessed valued. The tax authority claimed that the company sold cars at lower than its cost price to penetrate the market.

The erstwhile Indian partner — Premier Auto which makes Rio Compact Utility, may have to cough up Rs 49 crore, as per the apex court order. ET tried to reach out to Fiat and Premier Auto management but could not elicit a response.

The tax authority had found that the wholesale price declared by the company is much less than the cost of production and, therefore, the price declared by them could not be treated as a normal price for the purpose of quantification of assessable value.

The apex court also therefore held that excise duty has to be paid on cost basis and not on sale price. The ruling will have wider implications as it gives clarity on the fact that valuation under the central excise laws, lays down that central excise duty is chargeable on manufacture or production of goods and not on sale.

Supreme Court Justice HL Dattu, in his order, set aside the order passed by the tribunal and upheld the tax department's claim. The tax department was being represented by Bishwajit Bhattacharyya , additional solicitor-general of India, while for Fiat, the case was argued by senior counsel Joseph Vellapally and V Lakshmi Kumaran

.​

Supreme Court orders Fiat India to cough up Rs 400 crore as excise duty - The Economic TimesSupreme Court orders Fiat India to cough up Rs 400 crore as excise duty - The Economic Times

 

[visran]

Gurpratap Boparai to succeed Rajeev Kapoor as Fiat India President and CEO

Fiat India Automobiles Ltd today announced the retirement of Mr. Rajeev Kapoor from the post of President & CEO and appointment of Mr. Gurpratap Boparai as the new CEO of the company. Mr Rajeev Kapoor joined Fiat India Automobiles Limited in 2007 and has overseen the formative years of the operations to its present level and is retiring on reaching 60 years of age.

Mr. Boparai was so far heading the Power Train division of the company. He possesses the requisite skills and experience and will be responsible to scale up the state-of-the-art Ranjangaon facility to further heights under his leadership. Having joined Fiat India in 2007 as Assistant Vice President, Manufacturing and Powertrain Division Mr. Boparai took over as Head of Powertrain Division in 2009 where he was responsible for business development and overlooking all the functions of Power Train plants like manufacturing, Finance, HR, PE and others.

Mr. Boparai comes with over 20 years of experience in the automobile sector and has worked with some of the most reputed companies. His successful stints include Tata Engineering and Locomotive Company Limited, Ocap Chassis Parts Private Limited, Iveco and Tata Cummins Limited.

 

[dharmesh]

Re: Car & Manufacturer Wise Monthly Sales

When I bought PUNTO from Balaji Cars Thane, on asking SE informed me that they sell only 7-8 PUNTO per month and their target itself was something 12-15. But looking at the number of TATA dealerships across India. If each dealer sell atleast 2-3 PUNTO a month then the sales should be higher than what it is displayed. (This is just my assumption)

 

[Raja]

Re: Car & Manufacturer Wise Monthly Sales

I really wonder at Fiat sales numbers at times! I bought Punto from Aadya motors Bangalore. To my knowledge, Aadya sells atleast 1 Punto per day. i.e appx @30-35 cars per month from one showroom alone. There are @ 4-5 Tata-Fiat motors in Blore. Assuming everyone sells @ 25 cars per month, adds upto appx 125-130 cars per month from Bangalore alone! How come over all India sales is hovering so low! Am I missing something here!!!

If iam not mistaken the sales figure which are released are not actually the figures about how many consumers bought the car , but the number of cars dispatched by the company to the dealer in that particular month.

Say for example if some dealer already has a stock of puntos in his yard from 2 months then the comming month he won't order more because it will add to his inventory .

The sales figures of punto and linea just shows that the demand for the products is less from the market so dealer not ordering more resulting in less numbers of car dispatched in any particular month .

On side note - fiat needs to bring some new fresh products now because this 2 products are already long tooth now , new products bring the car maker in news and make people visit the showroom more , which can maybe turn in some better sales .

 

[Superbad]

Re: Car & Manufacturer Wise Monthly Sales

If iam not mistaken the sales figure which are released are not actually the figures about how many consumers bought the car , but the number of cars dispatched by the company to the dealer in that particular month.

Say for example if some dealer already has a stock of puntos in his yard from 2 months then the comming month he won't order more because it will add to his inventory .

The sales figures of punto and linea just shows that the demand for the products is less from the market so dealer not ordering more resulting in less numbers of car dispatched in any particular month .

On side note - fiat needs to bring some new fresh products now because this 2 products are already long tooth now , new products bring the car maker in news and make people visit the showroom more , which can maybe turn in some better sales .

i was speaking to a friend who has a linea petrol at his residence in cochin.

he says FIAT name has become a taboo in the indian market,their name was ruined by PAL, and then Tata.

if fiat want to stay in the indian market they need to follow the strategy GM did to opel. bring new products under the chrysler name and start a brand building exercise.

whatever hard they try FIAT would end up manufacturing only diesel engines to Maruti, tata and chevy.

 

[Raja]

Re: Car & Manufacturer Wise Monthly Sales

i was speaking to a friend who has a linea petrol at his residence in cochin.

he says FIAT name has become a taboo in the indian market,their name was ruined by PAL, and then Tata.

if fiat want to stay in the indian market they need to follow the strategy GM did to opel. bring new products under the chrysler name and start a brand building exercise.

whatever hard they try FIAT would end up manufacturing only diesel engines to Maruti, tata and chevy.

1) fiat dosent make engines for Chevy . Gm and fiat have jointly made the engines , unlike tata / maruti they don't need permission from fiat to use there engines , they can use modify , tweak .

2) fiat got screwed because of a union strike in premeir automobiles . They had record breaking bookings because of the strike they were not able to fulfill the demand and later premeir just lifted there hands in air and dibt return money to consumers and fiat went away .

3) it was infact because of tata they got again a re- entry , it's because of the reputation of tata group of industries in India ( tata group means not tata a.s.s there is a difference here )

4) fiat has been famous for supplying parts very late , most of the time many fiat owners have problem because of parts not available . It is fiats mistake to do allow tata a.s,s to service their cars , why dint fiat put their own staff ? Palio owners were frustrated with the poor quality of plastics , and non availability of parts from fiat . Fiat cars face this problems it's not that tata a.s.s spoil the interiors so there cars not selling if that was a case then why tata can sell their vista and manza more then fiat ? If tata was such a maligned company then how can they be 3 largest car maker in India ? JLR / ford board for jlr cars decided to merge in tata motors not because of just money but also because of the reputation of Tata group of companies worldwide .

5) fiat has been lazy allways they have been famous for running away in the middle of everything remember Sieana , Petra ?

6) if Renault can take a divorce from mahindra and can come and launch 5 products in record time , if Nissan can come and establish themselves , if ford can announce 5 new products by end of 2015 , why can't fiat do that ? Do you think they don't have products in their line up . Have you ever heard any kind of strategy or further future plans concerning products ever ? They have much more experience of Indian market then Renault , ford , Chevy and Nissan , ford , Toyota .

7) fiat India is a lazy company period . after all this years they have only punto and linea and in normal people eyes they are dated now .

8) they are busy opening coffee shops but are not even ready to announce what kind of products they are planning to bring in India . Fiat groups priority is Europe and south America not India at this momment .

9) I feel along with their own brand they must bring jeep , Chrysler in India and sell them through their own sales shop and service them through their own a.s.s centers. No need to change their brand what they need is priority based announcements and products across the segment and fast .