Can FIAT Re-Establish Itself in India?
- Thread Starter RSM
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Talking to Mr Enrico Atanasio, Senior Vice-President Commercial, Fiat India Automobiles Ltd
Established in 1899, Fiat is one of the world's major industrial groups. With operations in over 190 countries, the Group has 203 plants, 118 research centres, 633 companies and more than 198,000 employees. In India, the Italian company operates through a 50:50 joint venture with Tata Motors. The JV includes a vehicle and engine manufacturing facility. Fiat, in India, has set up a new company under its Indian subsidiary that would look at distribution. This company is currently working on setting up a dealer network dedicated to Fiat cars unlike the earlier arrangement where Tata Motors marketed and supported Fiat cars through a network of joint Tata Fiat dealers. Automotive Products Finder (APF) spoke to Mr Enrico Atanasio, Senior Vice-President Commercial, Fiat India Automobiles Ltd, on his company's plans and strategy.
What will be the role of the new distribution company to promote Fiat cars in India?
With the new company, we are concentrating on building a strong Fiat network. We have recently launched an independent dealership at Hyderabad. We are in the process of signing up new dealers, and would be announcing the same, soon.
How many dealerships do you plan to start?
Our focus is on expanding the dealer network. By the first quarter of FY13 we will appoint 80 dealers. You may be aware that we are de-coupling the marketing and distribution function of Fiat cars from Tata Motors though our joint venture with Tata Motors continues, and we continue to share the manufacturing facility at Ranjangaon. Till the transition to independent Fiat dealers continues, existing Fiat-Tata dealers will continue to operate and cater to Fiat cars.
How do you plan to leverage Fiat's brand recall?
We are working to hike the brand visibility. We are looking at gaining full credibility. Fiat is one brand that motorised this country. Our target is to assure people. We are working to create dedicated Fiat showrooms and workshops. We are looking at specialised people to represent this brand. We will focus on metro cities followed by others. We want to be careful, and may not be keen on touch points to start with. Let me reiterate that Fiat is serious. Our initial steps will therefore focus on clean standards.
Current Fiat car owners are not very happy with the existing service standards and spares availability?
That is precisely the reason we are keen to set up a strong Fiat dealer network. In India we have the biggest parts operation in the Asia-Pacific region. We will be expanding our service operations big time. We will be focusing on service and spares for Palios.
How do you plan to highlight Fiat's technological prowess in India?
We are offering a very advanced diesel engine in the form of the 1.3-litre Multijet diesel engine in India. Maruti Suzuki buys this engine from us. Tata cars are equipped with this engine. Premier is another client. There is a huge number of diesel engines with Fiat technology on Indian roads. Nearly a third of the diesel cars in India run on Fiat engine technology. To bring Multi-air technology to India we need essential numbers. It is a popular technology in Europe. We don't see it coming here quickly.
With the independent marketing and distribution company, does Fiat plan to end the joint venture with Tata Motors?
Fiat strategy is of successful joint ventures. While we are working on a new plan for products and engines, the joint venture with Tata Motors is working very well. We share a facility in India.
Does the joint venture with Tata Motors limit you from any new product plans?
No. We understand that in India, to be successful, one has to have volumes.
This comes from substantial local support, which we are working on. We want to be looked upon as a local company that gives the customers connectivity. A large chunk of connectivity will come from a reliable network.
Source -
Automotive Products Finder
Established in 1899, Fiat is one of the world's major industrial groups. With operations in over 190 countries, the Group has 203 plants, 118 research centres, 633 companies and more than 198,000 employees. In India, the Italian company operates through a 50:50 joint venture with Tata Motors. The JV includes a vehicle and engine manufacturing facility. Fiat, in India, has set up a new company under its Indian subsidiary that would look at distribution. This company is currently working on setting up a dealer network dedicated to Fiat cars unlike the earlier arrangement where Tata Motors marketed and supported Fiat cars through a network of joint Tata Fiat dealers. Automotive Products Finder (APF) spoke to Mr Enrico Atanasio, Senior Vice-President Commercial, Fiat India Automobiles Ltd, on his company's plans and strategy.
What will be the role of the new distribution company to promote Fiat cars in India?
With the new company, we are concentrating on building a strong Fiat network. We have recently launched an independent dealership at Hyderabad. We are in the process of signing up new dealers, and would be announcing the same, soon.
How many dealerships do you plan to start?
Our focus is on expanding the dealer network. By the first quarter of FY13 we will appoint 80 dealers. You may be aware that we are de-coupling the marketing and distribution function of Fiat cars from Tata Motors though our joint venture with Tata Motors continues, and we continue to share the manufacturing facility at Ranjangaon. Till the transition to independent Fiat dealers continues, existing Fiat-Tata dealers will continue to operate and cater to Fiat cars.
How do you plan to leverage Fiat's brand recall?
We are working to hike the brand visibility. We are looking at gaining full credibility. Fiat is one brand that motorised this country. Our target is to assure people. We are working to create dedicated Fiat showrooms and workshops. We are looking at specialised people to represent this brand. We will focus on metro cities followed by others. We want to be careful, and may not be keen on touch points to start with. Let me reiterate that Fiat is serious. Our initial steps will therefore focus on clean standards.
Current Fiat car owners are not very happy with the existing service standards and spares availability?
That is precisely the reason we are keen to set up a strong Fiat dealer network. In India we have the biggest parts operation in the Asia-Pacific region. We will be expanding our service operations big time. We will be focusing on service and spares for Palios.
How do you plan to highlight Fiat's technological prowess in India?
We are offering a very advanced diesel engine in the form of the 1.3-litre Multijet diesel engine in India. Maruti Suzuki buys this engine from us. Tata cars are equipped with this engine. Premier is another client. There is a huge number of diesel engines with Fiat technology on Indian roads. Nearly a third of the diesel cars in India run on Fiat engine technology. To bring Multi-air technology to India we need essential numbers. It is a popular technology in Europe. We don't see it coming here quickly.
With the independent marketing and distribution company, does Fiat plan to end the joint venture with Tata Motors?
Fiat strategy is of successful joint ventures. While we are working on a new plan for products and engines, the joint venture with Tata Motors is working very well. We share a facility in India.
Does the joint venture with Tata Motors limit you from any new product plans?
No. We understand that in India, to be successful, one has to have volumes.
This comes from substantial local support, which we are working on. We want to be looked upon as a local company that gives the customers connectivity. A large chunk of connectivity will come from a reliable network.
Source -
Automotive Products Finder
Note: Posts About Fiat Punto & Linea Absolute Edition Have Been Moved Here: http://www.theautomotiveindia.com/f...nning-bring-punto-linea-absolute-edition.html.
Drive Safe,
350Z
Drive Safe,
350Z
![[clap]](https://www.theautomotiveindia.com/forums/images/smilies/Clap.gif "Clap [clap]")
Fiat India officials have made remarks about the MPV and SUV segments, stating Fiat may participate in these growing segments in the coming years through introducing products brought in from Italy.
Do they have a choice?
The products that we think are good bets for the Indian market are the upcoming Fiat 500X crossover that can challenge the EcoSport and Duster. Benefiting from the teeming MPV segment should be the ambition of the Fiat 500XL, seen here in a leaked photograph.
Fiat 500 XL background
The Italian automaker Fiat, at the 2012 Geneva Motor Show, introduced the five-door 500L. The 500XL is an extended 500L with third row seats. The model was leaked prematurely from the design center where scale models meant for internal evaluation were snapped by an eagle-eyed photographer.
Recently, files were leaked from the patent office revealing more design details about the mini MPV.
Fiat 500L vs Fiat 500XL
This image (in the fold) posted by Fiatblog.nl* shows a 500 XL during its development stage. The 500XL is about 150mm longer than the Fiat 500L, but retains its mechanical package. Both cars are built on the Fiat Panda mini car platform – similar to the way the Ertiga bases itself on the Swift’s chassis.
The 500XL can be viewed as a spiritual successor to the Fiat Multipla, which is a leading contender for the ugliest car ever made since the dawn of time.
Fiat may use the spotlight of the Paris Motor Show that starts on September 29 to give the 500XL a public premiere.
[Source - FiatBlog.nl]
Read more: Fiat's Maruti Ertiga rival, 500XL, snapped without camou
Do they have a choice?
The products that we think are good bets for the Indian market are the upcoming Fiat 500X crossover that can challenge the EcoSport and Duster. Benefiting from the teeming MPV segment should be the ambition of the Fiat 500XL, seen here in a leaked photograph.
Fiat 500 XL background
The Italian automaker Fiat, at the 2012 Geneva Motor Show, introduced the five-door 500L. The 500XL is an extended 500L with third row seats. The model was leaked prematurely from the design center where scale models meant for internal evaluation were snapped by an eagle-eyed photographer.
Recently, files were leaked from the patent office revealing more design details about the mini MPV.
Fiat 500L vs Fiat 500XL
This image (in the fold) posted by Fiatblog.nl* shows a 500 XL during its development stage. The 500XL is about 150mm longer than the Fiat 500L, but retains its mechanical package. Both cars are built on the Fiat Panda mini car platform – similar to the way the Ertiga bases itself on the Swift’s chassis.
The 500XL can be viewed as a spiritual successor to the Fiat Multipla, which is a leading contender for the ugliest car ever made since the dawn of time.
Fiat may use the spotlight of the Paris Motor Show that starts on September 29 to give the 500XL a public premiere.
[Source - FiatBlog.nl]
Read more: Fiat's Maruti Ertiga rival, 500XL, snapped without camou
I am wondering what is fiat 500l doing in this thread. Going by the legacy, fiat will not think about it atleast for coming 4 years.then they will study the market then probably rename the existing punto to punto 500xl and try to be modest.
Fiat 500L Press Conference - Life on board: 500L as a Loft - YouTube
This Car does everything Including a coffee maker.
This Car does everything Including a coffee maker.
yes they are good at making but selling .
Have you heard how fiat500 failed initially just because everything was going well but they could not cater the demand and frustrated Americans looked elsewhere.
Similar happened in India too,Car was perfect,but After sale service and availability of spare parts was non existent.
it is strange to notice that Fiat fails most of the time to pull all the strings together and run a successful show.
Have you heard how fiat500 failed initially just because everything was going well but they could not cater the demand and frustrated Americans looked elsewhere.
Similar happened in India too,Car was perfect,but After sale service and availability of spare parts was non existent.
it is strange to notice that Fiat fails most of the time to pull all the strings together and run a successful show.
I am literally stunned to notice the overwhelming response for Renault Duster and soon enough quanto will be joining the game.
But my belief is if fiat brings similar cars in India , there wont be much of buyers, even if they price it cheaper ,rarley few would be interested..
such is the fate of fiat in India.
we have all seen how Fiat500 would eat dust in showrooms with nobody to take.
I think reputation of fiat in India is damaged beyond repair.
We Indians have lost all the trust in fiat.
Time and again since a decade fiat kept hurting our sentiments and a new generation has come up learning that -look that is fiat ,it have cheated us and it will cheat you too.
I was speaking to a middle aged man who was fully into automobile industry he says "At this point of time I wont mind buying an ambassador or second hand opel but I wont accept a fiat even if given free of cost.". I could see heartfelt emotions in his eyes. So I did not talk any further on fiat.btw He owns a VW vento.
I myself have been Fiat owner for last 2 years and never ever encountered any of the issues or niggles which are largely spoken of everywhere. But I have seen and felt when I say I got fiat, people gets disinterested and change topic.
On the other hand if I had mentioned i20 or swift or polo (I did lie to some) people are keen to know if they too have a chance to own one.
But my belief is if fiat brings similar cars in India , there wont be much of buyers, even if they price it cheaper ,rarley few would be interested..
such is the fate of fiat in India.
we have all seen how Fiat500 would eat dust in showrooms with nobody to take.
I think reputation of fiat in India is damaged beyond repair.
We Indians have lost all the trust in fiat.
Time and again since a decade fiat kept hurting our sentiments and a new generation has come up learning that -look that is fiat ,it have cheated us and it will cheat you too.
I was speaking to a middle aged man who was fully into automobile industry he says "At this point of time I wont mind buying an ambassador or second hand opel but I wont accept a fiat even if given free of cost.". I could see heartfelt emotions in his eyes. So I did not talk any further on fiat.btw He owns a VW vento.
I myself have been Fiat owner for last 2 years and never ever encountered any of the issues or niggles which are largely spoken of everywhere. But I have seen and felt when I say I got fiat, people gets disinterested and change topic.
On the other hand if I had mentioned i20 or swift or polo (I did lie to some) people are keen to know if they too have a chance to own one.
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Buddy, i think you should come to Bangalore, because the real fiat lovers are absolutely here!
IMO, it takes time for fiat to function as usual and today people tend to get news from every corner and thanks to media for that.
Till today given a chance for an hatch, my choice will be nothing but Punto.
IMO, it takes time for fiat to function as usual and today people tend to get news from every corner and thanks to media for that.
Till today given a chance for an hatch, my choice will be nothing but Punto.
I was in Bangalore last july and saw the streets flooded with i20 and Honda city.
People gazed at my Punto as if never seen before.![[embarass]](https://www.theautomotiveindia.com/forums/images/smilies/Embarass.gif "Embarass [embarass]")
People gazed at my Punto as if never seen before.
I was in Bangalore last july and saw the streets flooded with i20 and Honda city.
People gazed at my Punto as if never seen before.
People gazed at my Punto as if never seen before.
![[anger]](https://www.theautomotiveindia.com/forums/images/smilies/Anger.gif "Anger [anger]")
. When I said to my cousin last year that I have booked PUNTO, question was which car is this? Is it the one similar to I20![[roll]](https://www.theautomotiveindia.com/forums/images/smilies/Roll.gif "Roll Eyes [roll]")
.People knows it is PUNTO, but yet are unaware of it. This is purely because of lack of marketing and advertisement.
Fiat struggles in India multiply after Tata break-up
About four months after Italian car maker Fiat severed ties with Tata Motors and took charge of commercial and distribution activities of its branded cars in India, demand for its range of vehicles has fallen further.
From an average of about 1,800 units a month in 2010-11, Fiat sales dropped to about 900 units a month in the first four months of this financial year, according to data from the Society of Indian Automobile Manufacturers.
Fiat Group Automobiles India, the new company formed for the distribution and service of Fiat cars in India (after these operations were separated from the joint venture with Tata Motors), is mandated to set up a new Fiat dealer network. However, slackening demand for Fiat products and the lack of an adequate range of products is keeping dealers at bay.
Tata Motors dealers, among the first to have been approached by the Italian company to set up separate Fiat sales outlets, appear reluctant. “It should make business sense for us. If we realise Fiat is struggling with volumes, the brand and the number of products offered, we cannot invest crores on setting up separate outlets for it. How would we generate returns if we sell 10-20 units a month? Dealers who have been in this business for generations know it would be a gamble to make fresh investments,” said a dealer selling Tata Motors cars for more than a decade.
In May, a few days after it parted ways with Tata Motors, Fiat had unveiled its first exclusive dealership in Hyderabad. However, no new exclusive outlet has been opened so far. The company maintains it is positive on the announced target for dealership expansion— opening 20 such outlets by the year-end and accounting for 80-100 dealers in the next 14 months.
“We have received a very positive response from existing Tata Fiat dealers and new entrepreneurs. There is a lead time for construction and activation of new physical facilities, typically four to six months, depending on whether the facility is a partially-ready building or a greenfield facility. We are very confident of meeting our announced targets for 2012 and 2013,” said a Fiat India spokesperson.
Currently, Fiat retails only the Grande Punto and Linea models in India. Both models are positioned at the premium ends of their respective segments. While the Linea sedan is priced at Rs7.13 lakh, the Grande Punto costs Rs5.06 lakh (ex-showroom, Mumbai).
“Gradually, Fiat will stop supplies to the joint dealerships operating now, once their standalone stores are running. But it is not easy for them to win dealerships. In cities like Mumbai, where real estate prices are the highest in India, it wouldn’t be easy to generate returns,” said another Tata-Fiat dealer.
Though Fiat has phased out the Palio from 13 city markets, it has not shown any real interest in introducing new models. The Fiat 500, a lifestyle mini, was phased out last year, as the company decided against upgrading the car to suit India’s emission standards.
V G Ramakrishnan, senior director (automotive), Frost and Sullivan, said, “Fiat products never got their due. The failure of Fiat has more to do with the marketing strategy they adopted, than anything else. Joint dealerships are very common in western markets, but India is a very different place. In addition, below-par servicing for Fiat cars hit its brand image.”
Car & Bike Road Tests | Car Buying Tips, Ratings & Reviews : BS Motoring
About four months after Italian car maker Fiat severed ties with Tata Motors and took charge of commercial and distribution activities of its branded cars in India, demand for its range of vehicles has fallen further.
From an average of about 1,800 units a month in 2010-11, Fiat sales dropped to about 900 units a month in the first four months of this financial year, according to data from the Society of Indian Automobile Manufacturers.
Fiat Group Automobiles India, the new company formed for the distribution and service of Fiat cars in India (after these operations were separated from the joint venture with Tata Motors), is mandated to set up a new Fiat dealer network. However, slackening demand for Fiat products and the lack of an adequate range of products is keeping dealers at bay.
Tata Motors dealers, among the first to have been approached by the Italian company to set up separate Fiat sales outlets, appear reluctant. “It should make business sense for us. If we realise Fiat is struggling with volumes, the brand and the number of products offered, we cannot invest crores on setting up separate outlets for it. How would we generate returns if we sell 10-20 units a month? Dealers who have been in this business for generations know it would be a gamble to make fresh investments,” said a dealer selling Tata Motors cars for more than a decade.
In May, a few days after it parted ways with Tata Motors, Fiat had unveiled its first exclusive dealership in Hyderabad. However, no new exclusive outlet has been opened so far. The company maintains it is positive on the announced target for dealership expansion— opening 20 such outlets by the year-end and accounting for 80-100 dealers in the next 14 months.
“We have received a very positive response from existing Tata Fiat dealers and new entrepreneurs. There is a lead time for construction and activation of new physical facilities, typically four to six months, depending on whether the facility is a partially-ready building or a greenfield facility. We are very confident of meeting our announced targets for 2012 and 2013,” said a Fiat India spokesperson.
Currently, Fiat retails only the Grande Punto and Linea models in India. Both models are positioned at the premium ends of their respective segments. While the Linea sedan is priced at Rs7.13 lakh, the Grande Punto costs Rs5.06 lakh (ex-showroom, Mumbai).
“Gradually, Fiat will stop supplies to the joint dealerships operating now, once their standalone stores are running. But it is not easy for them to win dealerships. In cities like Mumbai, where real estate prices are the highest in India, it wouldn’t be easy to generate returns,” said another Tata-Fiat dealer.
Though Fiat has phased out the Palio from 13 city markets, it has not shown any real interest in introducing new models. The Fiat 500, a lifestyle mini, was phased out last year, as the company decided against upgrading the car to suit India’s emission standards.
V G Ramakrishnan, senior director (automotive), Frost and Sullivan, said, “Fiat products never got their due. The failure of Fiat has more to do with the marketing strategy they adopted, than anything else. Joint dealerships are very common in western markets, but India is a very different place. In addition, below-par servicing for Fiat cars hit its brand image.”
Car & Bike Road Tests | Car Buying Tips, Ratings & Reviews : BS Motoring
The bitter truth from horses mouth. how does any dealer survive with sale of 2 to 3 model a month?
pity .
pity .