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Abarth 500 - Launching soon

Discussion in 'Fiat India News' started by Ravi, Mar 6, 2014.

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  1. rahulvfx

    rahulvfx Amatore

    Messages:
    184
    Bangalore
    I think people knows that Fiat cars are good, but they are scared of Fiat's Service and also some people is having an idia that Fiat cars are expensive to maintain and there parts are not readily available. This are kind of reasons for which people don't even think to take test drives...
    Now I'm not sure how Fiat will encourage/ give confidence to customers to take Fiat cars (or only to do test drives )...
    For 7-12 lkhs still customers can take chances but above 25 lkhs, I don't think it well workout in current goodwill mark... It will be rather a show for showrooms rather seeing more on the roads...
    prabhjot likes this.
  2. Raj_pol

    Raj_pol Regolare

    Messages:
    497
    Bangalore
    Punto Evo 1.3
    @prabhjot Fiat is profitable but the money is coming from engines, AMT, licensing etc. That is fine but then there is a question on how do the dealers survive and I have been always curious on that. Let us say Fiat has 50 dealers and FIAT sells 2000 cars a month (I am assuming double the actual) that is 40 cars per dealer - very very difficult to survive.
    prabhjot likes this.
  3. prabhjot

    prabhjot Esperto

    Messages:
    2,455
    delhi ncr
    @Raj_pol

    Of course it is difficult: question is, is that not true of all the non-M/HY/H/T dealers too?

    On that front too Fiat's efforts are bearing some fruit. The Evo+Avventura, even if they together sell say only 900-1000, which would be more than the Grande Punto's average sales per month over the last 2 years, have been and will sell with FAR lesser discounting from either Fiat or the dealers: more revenues. Not counting the current year-end 'clearance sales' across the industry, that is.

    And in any case dealers' profits come more from service than sales, for now?

    They HAVE to indeed do much more stuff next year (Abarth Punto, 1.5 mjd?, amt? advertising? discounting?) before the all-new launches in 2016 and other than the Jeep launch, but it is difficult in the extreme in this marketplace, which is totally recessionary for all firms other than M, HY and H.

    I am guessing they are and will continue to help those decent dealers who are struggling, esp the ones in the smaller cities, since it seems most Fiat sales happen in the 8-10 biggest cities?
  4. jackharrisw

    jackharrisw Amatore

    Messages:
    146
    Chennai
    i20 and Swift selling in high numbers doesn't mean that these cars are good. It just goes to show the Indian herding mentality and the absence of FIAT dealerships in Tier-2 and 3 cities. What made you think that FIAT india did't make any effort to sell the cars. My hometown is a tier-3 town and Fiat has installed a small stall where customers can reachout for Testdrives and booking queries. Still, the number of inquiries were less.This is just due to the fact that FIAT is not even considered as one of the option while purchase due to herding mentality. But, i will certainly agree that FIAT didn't advertise about the brand as they did with the products.
    prabhjot likes this.
  5. dadasaheb

    dadasaheb Regolare

    Messages:
    374
    Pune
    MH 12 (Ranjangaon)
    Linea 1.3
  6. vista7155

    vista7155 Regolare

    Messages:
    314
    bangalore
    The report says "Fiat India has kept the 500 Abarth launch on hold due to increase in excise duty and also the resignation of Fiat India president and managing director, Nagesh Basavanhalli."

    This is ridiculous if they are delayed due to nagesh exit, then they should stop all the other activities in that sense .
    Anyhow 1st point is a valid but they delayed last year launch with recession reason and next year we don't know what will be the delay.
  7. dadasaheb

    dadasaheb Regolare

    Messages:
    374
    Pune
    MH 12 (Ranjangaon)
    Linea 1.3
    they are reacting like this taxation changes are going to apply them only and not to other luxury players.
    I think these are good excuses to hide the inefficiencies.
    let them take another 2-3 years to study the taxation in india and may be then they will come with some another ridiculous excuse just like one given for JEEP launch postpone.
  8. prabhjot

    prabhjot Esperto

    Messages:
    2,455
    delhi ncr
    I was expecting this, due to Nagesh's exit, and since it's the Abarth Punto that counts, and that was always going to be in the second half of the year. Though the Abarth 500 needs to be launched too, preferably before the Punto. Guess they might launch both together?

    They are not the only ones waiting for the budget: Maruti has delayed the S-Cross launch too. The budget MAY make big changes to the 1.2l petrol and 1.5l diesel excise duty rules, and to customs duties on car imports (under pressure from the EU, Japan and the US). Also, the budget will likely offer commitments on the GST and its rates, a very big deal financially for carmakers.

    They cannot let currency fluctuations impede/slow the Jeep launches, surely, expensive though it can be if their anticipations about the rupee-euro/dollar rate are wrong! The other luxury/premium car makers are in exactly the same boat, after all.

    Overall, it's prudent of them to wait for the budget, but they MUST really move quickly and well thereafter, both on Abarth and of course Jeep.
  9. jumu

    jumu Superiore

    Messages:
    969
    Chennai
    I cannot understand the fuss that Fiat constantly creates about the market conditions and the exchange rate....etc. Indian car companies are selling products from the range of the tiny Alto upto Bentley and Rolls Royce. Fiat is not the only company planning to sell CBUs and top of the range cars and SUVs. They should make a decision and go ahead. Such stop start techniques should be in their cars, and not in the management decisions. From a decision to the market, there will always be variables that need to be factored in and moved on. A couple of lakhs difference to a 60 lakh product will not affect as that segment dont decide negatively on price changes If Fiat are so decisive of their plans, then I must say that most of their plans havent gone well with the existing portfolio. Constantly changing plans and launches exposes their nervousness.

    Abdul
    prabhjot likes this.
  10. dadasaheb

    dadasaheb Regolare

    Messages:
    374
    Pune
    MH 12 (Ranjangaon)
    Linea 1.3
    I am saying that it is good to wait for budget, but side by side they should be developing the assembly lines so that to achieve CKD path for all the vehicles.
    prabhjot likes this.
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