Thread Starter
#61
Can FIAT Re-Establish Itself in India?
- Thread Starter RSM
- Start date
Advertising and marketing of Fiat India's products are in the domain of Tata Motors. Fiat India's job is to supply the products as per the intend placed by Tata Motors.
Both Tata Motors and Fiat India require each other for different reasons. Tata Motors share Fiat India's Ranjangaon state-of-the-art plant for some of their products, use Fiat diesel MJD engines, depends on Fiat for marketing of their Nano in Europe and other countries. Fiat India require Tata Motors for their vast service network, making available low-cost spares, etc. Fiat India, with its heavy luggage of the past, require the company of Tata Motors for some more years.
My personal experience: slowly and steadily, Fiat India is improving in providing after sales service.
Both Tata Motors and Fiat India require each other for different reasons. Tata Motors share Fiat India's Ranjangaon state-of-the-art plant for some of their products, use Fiat diesel MJD engines, depends on Fiat for marketing of their Nano in Europe and other countries. Fiat India require Tata Motors for their vast service network, making available low-cost spares, etc. Fiat India, with its heavy luggage of the past, require the company of Tata Motors for some more years.
My personal experience: slowly and steadily, Fiat India is improving in providing after sales service.
Fiat definitely is improving but it is time they should start straightening up some of those dealerships which as are not doing the job on their part as they should, and this could directly or in-directly again effect the Fiat’s image. Also, what is one worth debatable topic is that lately why Fiat models are not performing so well in market (in spite of being most attractive deals), as we all expected to be? Fiat’s CEO Rajeev Kapoor himself said that “numbers could have been better” regarding the sales of their cars.
Drive Safe,
350Z
Drive Safe,
350Z
Thread Starter
#64
Tata-Fiat joint venture drives into profit zone
Fiat India, the 50:50 joint venture between Italian carmaker Fiat and Tata Motors, has reported Rs 22 crore profit for the first quarter against Rs 166 crore loss for the corresponding period a year ago. Revenues doubled to Rs 967 crore from Rs 473 crore. This signals a turnaround in the three-year-old joint venture, given the losses it had accumulated in the past many quarters.
From January 2008 to March 31, 2010, the joint venture had a cumulative loss of Rs 971 crore. The loss for the last fiscal was Rs 272 crore. The Fiat India Automotive Private Ltd (FIAPL) had invested Rs 4,000 crore in Ranjangaon to build a plant with a capacity to make 1.6 lakh units a year. Fiat accounts for 70,000 and Tata Motors, the balance. .
The increased capacity utilisation by both the partners and expanding joint dealerships are helping the venture stabilise production and marketing operations.
Fiat makes mid-size Linea and hatchback Grande Punto and Tata Motors makes Indica Vista and Indigo Manza at Ranjangaon. The capacity utilisation at the plant has been increasing over the years. In the last fiscal, Fiat produced 24,000 cars and this year it hopes to double production, according to Mr Rajeev Kapur, Chief Executive Officer (CEO), FIAPL.
Increasing Sales Network
Fiat's first quarter sales were up 15 per cent at 9,020 units, thanks to increasing sales network that is currently at 170 dealerships covering 130 cities/small towns.
“We are bringing out 90 hp Punto, which will be the most powerful hatchback in the market, during the festival season. The high power version of Linea will also be launched around the same time. This will help us improve volumes,” Mr Kapur told Business Line.
Asked when the company would break even, he said, “We hope to break even by financial year 2011-12.” The company has pinned its hopes on the upcoming small car besides variants of Linea and Grande Punto.
“Going by the performance for the last quarter, achieving breakeven by FY 12 looks quite possible,” said Mr Navin Matta, an analyst with Ambit Capital.
“The plant operation has now stabilised and the marketing expenditure has come down,” he said.
Fiat has another revenue stream in engine production. The company makes 1.3 multi-jet and 1.4 FIRE petrol engine at its powertrain facility at Ranjangaon.
The company exported 35,000 engine units to its parent company Fiat Italy last year.
The performance of Fiat India seems to have enthused the joint venture partner Tata Motors.
Mr Carl-Peter Forster, Managing Director and CEO, Tata Motors, said, “We are looking to strengthen the Fiat brand in India.” He said that the joint venture is looking at expanding Fiat's product range and marketing in the Indian market. Tata Motors' investment in FIAPL stood at Rs 999.54 crore as on March 31, 2010.
Source - The Hindu Business Line : Tata-Fiat joint venture drives into profit zone
Fiat India, the 50:50 joint venture between Italian carmaker Fiat and Tata Motors, has reported Rs 22 crore profit for the first quarter against Rs 166 crore loss for the corresponding period a year ago. Revenues doubled to Rs 967 crore from Rs 473 crore. This signals a turnaround in the three-year-old joint venture, given the losses it had accumulated in the past many quarters.
From January 2008 to March 31, 2010, the joint venture had a cumulative loss of Rs 971 crore. The loss for the last fiscal was Rs 272 crore. The Fiat India Automotive Private Ltd (FIAPL) had invested Rs 4,000 crore in Ranjangaon to build a plant with a capacity to make 1.6 lakh units a year. Fiat accounts for 70,000 and Tata Motors, the balance. .
The increased capacity utilisation by both the partners and expanding joint dealerships are helping the venture stabilise production and marketing operations.
Fiat makes mid-size Linea and hatchback Grande Punto and Tata Motors makes Indica Vista and Indigo Manza at Ranjangaon. The capacity utilisation at the plant has been increasing over the years. In the last fiscal, Fiat produced 24,000 cars and this year it hopes to double production, according to Mr Rajeev Kapur, Chief Executive Officer (CEO), FIAPL.
Increasing Sales Network
Fiat's first quarter sales were up 15 per cent at 9,020 units, thanks to increasing sales network that is currently at 170 dealerships covering 130 cities/small towns.
“We are bringing out 90 hp Punto, which will be the most powerful hatchback in the market, during the festival season. The high power version of Linea will also be launched around the same time. This will help us improve volumes,” Mr Kapur told Business Line.
Asked when the company would break even, he said, “We hope to break even by financial year 2011-12.” The company has pinned its hopes on the upcoming small car besides variants of Linea and Grande Punto.
“Going by the performance for the last quarter, achieving breakeven by FY 12 looks quite possible,” said Mr Navin Matta, an analyst with Ambit Capital.
“The plant operation has now stabilised and the marketing expenditure has come down,” he said.
Fiat has another revenue stream in engine production. The company makes 1.3 multi-jet and 1.4 FIRE petrol engine at its powertrain facility at Ranjangaon.
The company exported 35,000 engine units to its parent company Fiat Italy last year.
The performance of Fiat India seems to have enthused the joint venture partner Tata Motors.
Mr Carl-Peter Forster, Managing Director and CEO, Tata Motors, said, “We are looking to strengthen the Fiat brand in India.” He said that the joint venture is looking at expanding Fiat's product range and marketing in the Indian market. Tata Motors' investment in FIAPL stood at Rs 999.54 crore as on March 31, 2010.
Source - The Hindu Business Line : Tata-Fiat joint venture drives into profit zone
Really nice to know that FIAT is on profit now. This will give them the reason to think about new models. I guess they can think about utility vehicles too. Remember that Omni was used utility vehicle. FIAT has a good range of similar sized utility vehicles and with its FE diesel engines, they can easily grab the market.
This is good news for us Fiatians. A company making profit is going to stay here for atleast couple of years and by the time my car will be around 3 to 4 years old, so no more worries of ASS.![[clap]](https://www.theautomotiveindia.com/forums/images/smilies/Clap.gif "Clap [clap]")
Thread Starter
#67
Why you are worrying about A.S.S? Tata is legally obliged to service Fiat cars, and Tata is not going to go out of India.
But TAFE is not offering fiat service in all its dealerships ![[frustration]](https://www.theautomotiveindia.com/forums/images/smilies/Frustration.gif "Frustration [frustration]")
only in cities not in small towns where we have a tata service but not fiat service .But I dont understand why ?![[confused]](https://www.theautomotiveindia.com/forums/images/smilies/Confused.gif "Confused [confused]")
only in cities not in small towns where we have a tata service but not fiat service .But I dont understand why ?
Thread Starter
#70
But TAFE is not offering fiat service in all its dealerships only in cities not in small towns where we have a tata service but not fiat service .But I dont understand why ?
only in cities not in small towns where we have a tata service but not fiat service .But I dont understand why ?
I understand RSM.
But lot of people who buys FIAT doesn't knew this fact before purchase!
They all think that FIAT is backed up with TATA & TATA has a great network.
But when they come to know about it, they might feel betrayed!
Isn't so ?
But lot of people who buys FIAT doesn't knew this fact before purchase!
They all think that FIAT is backed up with TATA & TATA has a great network.
But when they come to know about it, they might feel betrayed!
Isn't so ?
Thread Starter
#72
This is first time I am hearing People buys because Tata is supporting service. I always keep hearing in reverse, Tata is not able to service Fiat cars.
Now regarding word - betray - I am not sure whom to blame. The manual, websites etc clearly lists out where service is available. And I don't think Fiat cars are sold in all Tata's network. I am not 100% sure but whichever city has Fiat sales network, it has service network as well.
Now Tata supports Fiat cars in almost 170 dealership. Apart from Maruti and Hyundai, I don't think any other manufacturer have very big network than Fiat.
Now regarding word - betray - I am not sure whom to blame. The manual, websites etc clearly lists out where service is available. And I don't think Fiat cars are sold in all Tata's network. I am not 100% sure but whichever city has Fiat sales network, it has service network as well.
Now Tata supports Fiat cars in almost 170 dealership. Apart from Maruti and Hyundai, I don't think any other manufacturer have very big network than Fiat.
But you forget that they are legally obliged as long as there’s a tie-up between both manufacturers!
Not only servicing, in fact some of the Tata showrooms are not even selling Fiat cars. This is what happened when I undecidedly chanced to visit one of the Tata showrooms in hope to test Linea. The reason which dealer explained me? Since dealerships are after all an individual bodies, many of them are not yet accepting to trade with Fiat India cars. The core reason is still I’m not aware about.
Drive Safe,
350Z
Not only servicing, in fact some of the Tata showrooms are not even selling Fiat cars. This is what happened when I undecidedly chanced to visit one of the Tata showrooms in hope to test Linea. The reason which dealer explained me? Since dealerships are after all an individual bodies, many of them are not yet accepting to trade with Fiat India cars. The core reason is still I’m not aware about.
Drive Safe,
350Z
Thread Starter
#74
See if Tie-up is broken, somebody has to buy 50% share of Tata or Fiat. Whoever buys the stake, the legal binding will be transferred to them.
For ex. - Mahindra-Renault JV is broken, and since Mahindra bought Renaults share, so does its responsibility.
I am quoting Fiat CEO Desk reply to similar query, from other forum -
For ex. - Mahindra-Renault JV is broken, and since Mahindra bought Renaults share, so does its responsibility.
I am quoting Fiat CEO Desk reply to similar query, from other forum -
![[:)]](https://www.theautomotiveindia.com/forums/images/smilies/Smile.gif "Smile [:)]")
Hey, I was never worried, it was just a joke. I am using Fiat cars since I got driving licence in 1982 and from recent Uno to Linea, never worried.