Can FIAT Re-Establish Itself in India?

[Raja]

Guys I am not against Fiat, its a great brand globally. I am aware of the improvements they have been making recently in A.S.S. However getting back to thread title, the question is can Fiat re-establish in India and I don't think cars like Punto or Abarth can help do that. These are niche products that only cars enthusiasts like in this forum buy, and are not mass appeal cars and won't sell in any numbers. Fiat needs to sell here what people like/want to buy. They can look at what kind of cars other MNCs like Ford and Honda have launched recently to boost their flagging sales.

I understand your concern , kindly read this maybe you will feel better about fiat , they are I thinking planning exactly what you intend them to do . Beside this they are bringing jeep too .


http://www.fiat-india.com/docs/pdf/Press Release_101212.pdf

And

Fiat dedicated the complete 2012 for preparing and launch of exclusive Fiat distribution network and now is the time to earn dividends. Here we list all their products which are coming to India

Year 2013

This will be the year which will mark the entry of real Fiat. The Italians will start by launching refreshed variants of Punto and Linea towards early 2013 and follow them up with a new model – Linea Classic. What will this Linea Classic be is not known, but it appears that before launching the new Linea in India, the current Linea might get the ‘Classic’ tag and might be sold as a lesser variant. Here are the 3 Fiat launches for the year 2013:

New Punto Refresh: Initial 2013
New Linea Refresh: Initial 2013
Linea Classic: End of 2013


Year 2014

Year 2014 will be the most important and exciting year for Fiat and prospect customers where they will launch not one or two but three new models. The year will be welcomed by the New Linea followed by New Punto. And following these two will be possibly the most important segment launch – CUV. Either it is Crossover Utility Vehicle or Compact Sports Utility Vehicle, we will take either forms!

Punto New Model: First half of 2014
B-Segment CUV: Second half of 2014
New Linea: Starting 2014
Year 2015

Till now, a lot of expectations will be fulfilled by Fiat and with new products, sales must be in full swing…at least that is what is expected! In 2015, Fiat will launch Special Models of New Punto and New Linea, both towards the middle of the year.

Special Edition of Punto: Middle of 2015
Special Edition of Linea: Middle of 2015


Year 2016

Fiat will launch model refreshes of their then New Punto, Linea Classic and New Linea towards the start of the year and sit quiet.

Refresh of 2015 Punto
Refresh of Linea Classic
Refresh of New Linea
All these add upto a total of 11 new product launches for for the coming 4 years. Currently, according to Fiat, their two products Punto and Linea operate in a market segment of around 22 percent. With these new introductions (including JEEP’s products which we will talk about in an upcoming article), Fiat/Jeep will play in a bigger ~40% market with obviously better and more ammunition. Fiat wants to take their negligible current market share to around 5 percent in the times to come.

List of All 11 Upcoming Fiat Cars Launches in India Till 2016 | MotorBash.com

 

[set12]

I understand your concern , kindly read this maybe you will feel better about fiat , they are I thinking planning exactly what you intend them to do . Beside this they are bringing jeep too .


http://www.fiat-india.com/docs/pdf/Press Release_101212.pdf

Thank you for that link. Now that will do some good for building brand image! Wonder if Fiat has a small car they can use for India below Punto...

 

[Raja]

Thank you for that link. Now that will do some good for building brand image! Wonder if Fiat has a small car they can use for India below Punto...

You are welcome .

Fiat does have smaller cars too like UNO . But in India they have different plans . Read this article .

We do not want to get into the mass (car) segment: Nagesh Basavanhalli | Business Standard

With the competition among car makers is getting fierce with companies bringing new models at cheaper price to lure buyers, Italian car maker, Fiat Chrysler India says it has no plans to join the price war by slashing prices of its existing models. Nagesh Basavanhalli, president and managing director, Fiat Chrysler India speaks to Rutam Vora as to why it is not interested to jump into the price war and what is their strategy to mark their presence in the Indian market. Edited Excerpts:

There is a price war between the companies to attract customers in the dull market conditions. Are you contemplating to bring down prices of your existing models?
We are not into price war. Our strength is our quality, innovation and technology. The group is big and we have access to platforms from Europe, North America and South America. So we can bring better products that can be adapted or engineered for Indian conditions. And that’s what we are going to bring. Fiat is already present in the 70% of the auto market with its B+ and C segments.

Now we are going into sports utility vehicle (SUV) segment, so that’s another 10%. Now, only a small portion of around 10% is remaining for the A segment, or the small car segment. We do not want to get into mass segment as our strength is in B, C segment. So we will concentrate on B and C segments.

What is the strategy that you have adopted to grow in the Indian market after your split with the Tata Motors on dealership front?
We have adopted a three-pillar strategy to mark our presence in India. This is based on network, branding and products. This helps us to go directly to the Indian customers and not through a partner and cater to our customers better. On the branding side, we had to reintroduce the Fiat brand because we felt that the brand had grown over the years and there is a need to get connected with new customer class.

And on the product strategy, we are planning to launch nine new or significantly upgraded models from the existing ones. Four of them will be from Fiat brand, four from Jeep brand, which is also a Fiat brand and a performance car from Abrath brand. These will be introduced in phased manner over the next two-three years.

What will be your marketing strategy in the current market scenario?
There are about 200,000 Fiat cars in India. They are Fiat customers, who owned this car earlier and now probably shifted to other brands. Fiat was a household name in the past. Now, we want to approach these customers, mainly in the smaller towns and bring back to us. Cities like Ahmedabad, Baroda, Surat are very strong hold of Fiat customers.

So main thing is to get back our old customers, give them the right service experience and sales experience. There are die hard fans of Fiat brand, waiting for a dealership to get located nearby them. So, when we have those types of people, than price doesn’t matter. We are very fortunate to have them.

How you plan to grow the company in coming years?
We want to be a significant player in this market. We were a top player once, we want to get back. We want to double our market share, which is less than 1% as of now. We sell around 7,000 cars per annum, we are looking to double this number after opening 100 dealerships by the end of this year.

We have the technology, innovation and great brands worldwide. So, we believe we are the right company that over time the Indian consumers would like to love.Also, we have the largest parts stock room in Asia and that is located close to our factory. We are stocking components there. And they can be supplied to any part of the country within 3 working days. So our service commitment can be met.

With new launches in the pipeline, are you looking at expanding production capacity in the coming years?
No. That is not required as we’ve sufficient capacity to produce 200,000 cars and 300,000 engines and transmissions at our existing facility at Rajnangaon near Pune.

And

Fiat bets on SUVs and sporty cars in India reboot | Reuters

(Reuters) - Go specialist and go alone. That's Fiat SpA's(FIA.MI) new mantra for India as the Italian carmaker tries, once again, to crack the world's seventh-largest car market.

Fiat, one of the first Western carmakers to enter India but now the worst performing, opens a new, fully-owned 57-dealer network on April 1, hoping to attract more of the 1.2 billion people in the world's second most populous country.

Rather than launch a new model in the cheap, small car segment that dominates India and is ruled by Hyundai (005380.KS) and Maruti Suzuki (MRTI.NS), Fiat plans to tap into fast-growing areas like sports utility vehicles (SUVs) and sporty cars.

It will bring its Chrysler Jeep SUV to the country this year and build a small version of the car there by 2015, as well as take aim at the higher end of the market with Abarth, the sports version of its 500 and Punto models.

Analysts think it will be a challenge, but could work.

"I think Fiat's focus is on launching a couple of niche products and rebuilding the customer experience," said Deepesh Rathore, Managing Director of IHS Automotive India. "It's painful but it's the time to tell the customer that Fiat is different from the image he or she has had in mind."

Fiat agreed in 2007 to build and sell cars with India's Tata Motors (TAMO.NS) as foreign automakers began piling into the fast-growing market. But after three years of falling sales at dealers where Fiat's cars were displayed along the lower-priced Tata competitors, the Italian company decided in May 2012 to cut its distribution agreement with its Indian partner.

A reboot is certainly in order. While Fiat's 1.3 litre MultiJet diesel engine is under the hood of 75 percent of India's small cars, the automaker sold just 203 Fiat-branded autos in February, the worst of any major brand, and its market share has dwindled to a mere 0.3 percent this fiscal year.

"We all believe that we have scratched the bottom of the barrel," Enrico Atanasio, managing director of Fiat India told Reuters. "(Our performance) is not what the brand deserves."

Now is not a great time for a relaunch. Car sales in India are set to fall this financial year for the first time in a decade, hurt by high interest rates and slowing economic growth.

Yet the potential is there. LMC Automotive expects India's car market, currently around 2.6 million vehicles, to grow to about 6.9 million in 2017. That's around half its forecast for western Europe, although well below its projections of 16.9 million for the United States and 31.5 million for China.

"India is a small, low-margin market for Western auto makers ... there is no indication of a near-term earnings upside," said Phillip Houchois, auto analyst at UBS.

"But if you think India will one day be like China, it's nice to be able to put down roots there."

With enthusiastic new dealers, Atanasio believes Fiat can end 2013 with 1 percent of the market and aim for 5 percent longer term. It plans to exit the year with 112 dealers, versus the 170 it had with Tata, and will continue to build engines and cars locally with the Indian company.

MINI JEEP, LOCAL TWEAKS

A boxy Fiat sedan, built by Premier Automobiles from 1964 as the Fiat 1100 Delight, is a familiar sight in Mumbai where many still ply roads as Premier Padmini taxis. But more recently, its Punto hatchback and Linea sedan have not caught on.

Fiat simply did not get the product offering right, Fiat Chief Executive Sergio Marchionne admitted earlier this month.

Fixing it means introducing the Jeep Cherokee and Wrangler models this year, to grab a piece of India's booming SUV market, which LMC Automotive sees reaching more than 1 million by 2019 from just 363,000 last year.

Fiat also plans in 2015 to begin production in India of a new mini-SUV Jeep currently under development, which will be sold locally and also exported to other markets, Atanasio said.

Fiat took control of Chrysler in 2009, and has slowly been adding the U.S. carmaker's brands to its stable worldwide. In all, Fiat-Chrysler plans to launch nine new or refreshed models in India in the coming years, Atanasio said. Recently, India was the only place where Fiat was selling just one brand.

It will not, however, launch a new model in the low-priced small car segment which accounts for around 70 percent of sales in India as middle class families trade in their motorcycles for four-wheeled status symbols.

Instead, it will modify the models it does sell in India to suit local conditions, like the Linea sedan, built with a higher ground clearance for India's pot-holed roads.

"Fiat will have to get its pricing and marketing strategy right for this model (segment) if its wants to be successful in India," said Ammar Master of LMC Automotive in Bangkok.

 

[me2us2me]

congrats for booking Punto.dont get scared i will give you assurance that you wont have bad experiences at Fiat ASS afterall you have invested big money at stake in this brand.waiting for you car's loads of pics,booking,showroom,buying and ownership review.

Thanks Dear. It's because of all those happy ownership reviews that i finally listened to my heart and booked punto. Looking at the directions Fiat moving I am also hopefull that they be shining one day here also.
Looking at the sales figure Fiat sales is continuously improving for last four months.
Apr May June July
Punto: 294 509 601 724
Linea: 97 111 174 204
Total: 391 620 775 928
quite interesting.

 

[set12]

Thanks for the info Raja. So it becomes clear Fiat will not be a volume player but will concentrate on niche products only to get brand recognition, beside getting higher profits from premium products. Well best of luck to them. Looks like they are waking from their deep slumber

 

[VivekRj.Dieselhead]

But frankly speeking I still get scared after reading some bad experiences of fiat ASS afterall it's big money at stake.

Just don't worry buddy, here in delhi we are always there if some Fiat owner need any help, related to sale and service. BTW at which dealership have you booked your italian babe.

 

[Nadeem Ahmed VR 46]

Thanks Dear. It's because of all those happy ownership reviews that i finally listened to my heart and booked punto. Looking at the directions Fiat moving I am also hopefull that they be shining one day here also.
Looking at the sales figure Fiat sales is continuously improving for last four months.
Apr May June July
Punto: 294 509 601 724
Linea: 97 111 174 204
Total: 391 620 775 928
quite interesting.

Fiat's cars are made of quality,so ownership reviews will be happy and no frequent visits to ASS.glad that u finally listened to ur heart and booked punto.one day for sure they will shine here in india also because of their hard work by starting exclusive dealerships and improving ASS.Fiat is the only brand in india which is seeing a constant increase in sales month after month despite sluggish indian auto market.

Thanks for the info Raja. So it becomes clear Fiat will not be a volume player but will concentrate on niche products only to get brand recognition, beside getting higher profits from premium products. Well best of luck to them. Looks like they are waking from their deep slumber

Now Fiat is not looking at getting volumes for its products but to establish its brand here in india by concentrating on its niche products and launching premium products and reap high profits.ya now they are waking up from their deep slumber.Best of Luck to Fiat to conquer indian market.

 

[jagrover]

Brand building exercise on the way..!!
Yes, Jeep brand will taste success. But for Fiat to be in the hearts of people, they should bring more cars. Unless that happens, they will not reach the destination they want..!!

 

[Nadeem Ahmed VR 46]

Brand building exercise on the way..!!
Yes, Jeep brand will taste success. But for Fiat to be in the hearts of people, they should bring more cars. Unless that happens, they will not reach the destination they want..!!

First Fiat wants to build its Brand image here in India by launching Jeep SUV's and Performance Brand Abarth.but Fiat will bring their own cars from 2014 to be in the hearts of masses,now its in only enthusiasts.

 

[350Z]

Fiat might follow footsteps similar to Ford. The existing Linea is expected to be rebranded as Linea Classic once the New Linea launches in India (Source: Indian Cars Bikes.in).

Drive Safe,
350Z

 

[Tornado]

But they aren't launching something like ES

 

[jagrover]

Fiat as a brand has good value and it has a special place in our hearts. Who cares having a bit of Italian flair in our garage..

What was lacking was service quality and quality of products. Punto's interior quality has raised questions..!! Also lack of a good model line up also was a problem..

We need Fiat branded cars..!! Even though Tata sells JLR the brand value of Tata is obtained only through its products..!!

 

[Raja]

Fiat is launching 2013 punto sports .

Well nothing new here just a black roof .

I think fiat India has even outclassed tata and maruti is keeping the same model and bringing refreshed version now and then .

 

[Raja]

Aug 14, 2013
Fiat gave a mid-cycle facelift to the Linea in international markets like Turkey way back last year. Now, though, the Italian carmaker has finally started testing the updated Linea in India.

The facelifted saloon will come with a new front grille, re-profiled bumper, new fog lamp clusters and lots of chrome. At the rear, the bumper gets minor tweaks with an additional chrome strip and the number plate has now moved on to the bootlid. The side profile looks identical to the current car though.

Move into the cabin and you'll spot a new three-layered two-tone dash that looks refreshing and feels more upmarket. The steering wheel is similar to the current car, but now comes with a touch of silver and the centre console gets a new integrated audio system and more modern-looking AC vents with useful cubby holes above them. The gear lever, climate control knobs and the door pads, however, look similar to the current car. The instrument cluster will now come with chrome-ringed recessed dials and circular centre. Continued..

Fiat begins testing Linea facelift in India | News | Autocar India

There is no news on the engine front as of now. We expect the updated Linea to carry over the current engine line-up, which consists of a petrol, diesel and a turbo-petrol T-Jet engine.

Fiat recently launched the 2013 Linea T-Jet, which, unlike the previous model, comes in three trims. So when Fiat does launch the new Linea in India, the current model will most probably be rebadged the 'Linea Classic' and will be sold alongside the new car.

Expect Fiat to launch the updated Linea in India soon.

The carmaker currently has 70 exclusive dealerships in India and it's looking to build this number to around 120 by the end of the year.

 

[sarabjeet]

i dunno how Fiat plan to re-strategies itself with these minor upgrades ? The new linea has refreshed interiors, but some how magically when the car lands in India the quality diminishes.

As for MJD, it was made in collaboration with GM. sadly both of them are not doing well.
Come on guys, ask your self. Fiat has the technology then why is it not selling ? It is even struggling in European markets.

Two things that i can come up with is

-Kerb weight is more than its competitors and mostly cars are underpowered ( atleast in India )

-questions about interior quality

The only model in Fiats current line up that excites me is the 500. This is the correct time to relaunch 500 because there is demand for luxury small cars.