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Fiat and Tata to re-align their Indian joint-venture

Discussion in 'Fiat India News' started by cyberdoctorind, Jan 4, 2012.

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  1. teky

    teky Esperto

    Messages:
    1,587
    Chennai
    Another article in ET talking about Fiat's strategy for coming months.
    2 people like this.
  2. amit

    amit Superiore

    Messages:
    767
    Navi Mumbai
    Higher volumes will result in better avaliablity of spares, specially slow moving spares. The reason dealers do not keep stock today is because volumes are low, few cars being sold means few cars will come in for service , to add to that, Fiat maybe giving 30 days credit to dealers for buying spares, why should a businessman spend on inventory carrying cost for a product that sells barely 1000 units every month all over India! It's easier for a metro city dealer but think about a dealer sitting in a small city like Raipur, Jodhpur, Puri or Bhubneshwar. How many Fiat's must be getting sold & serviced there?
    3 people like this.
  3. Ravi

    Ravi Staff Member Janitor

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    6,001
    Bangalore
    Grande Punto 1.3
    Interesting quote -
  4. jumu

    jumu Superiore

    Messages:
    969
    Chennai
    Amit,

    Agree to your logic. That is in normal business. Today with the advancements in logistics, if a dealer places an order in the morning, Fiat should be able to ship the parts by evening and it should reach the TASC in 2 working days. Fiat should be having a deposit from the dealer and the payment can be adjusted from that. The priority should be to service the customer need asap especially when your recognized area of weakness is service. The customer will not complain when they know that the mfr is doing as much as possible.

    Abdul
    Last edited by a moderator: May 29, 2012
  5. puntosat

    puntosat Superiore

    Messages:
    588
    Bangalore
    I spoke to one of SA tday..

    He was very sure that FIAT independent showroom by FIAT..will come at J.C road,B'lore...including service ...very shortly (like 3-4 months)

    He also said one more option is Yelehanks..its either Aadya or Fiat themselves at Yelahanka..
  6. amit

    amit Superiore

    Messages:
    767
    Navi Mumbai
    That can happen if Fiat themselves have the part in stock! For any vendor, Fiat's business is very small & to top if Fiat's aggressive cost target's would not be making too much of business sense. It's pure business that small volumes are sold at premium prices, any customer that does not want to pay premium prices will get second class treatment. Based on the quality of some of the parts used in the Linea & Punto, it is clear that Fiat is not ready to pay good money for their parts. Ill fitting parts and gaps also indicate Fiat QA accepts parts with tolerances wider then their standards which probably points to poor vendor control on part of Fiat. Again, the small volumes would mean Fiat cannot exercise control over a vendor the way a Maruti can.

    Then you have to add the fact that Fiat is not the distributor of their cars & spares. This is handled by Tata Motors. Clearly, Indica parts are getting preferential treatment over Punto parts pointing to the fact that the 50:50 JV does not seem to be as equal as it seems on paper or, that again, Fiat is not able to exercise an equal say in the JV.

    The way out is higher volumes but currently Fiat is in a chicken & egg situation. Spares issues cannot be solved until higher volumes come in & higher volumes cannot come in unless the market believes spares issue has been solved.
    1 person likes this.
  7. sungoa2010

    sungoa2010

    Messages:
    2,878
    Goa
    What about the fact that there won't be enough space to keep all the parts of all fiat vehicles and all Tata vehicles. If we see through chicken-egg situation we need to justify the sales of ford, Nissan and Renault. Also GM is also notorious for spare availability in past. I don't know how the situation is now.
  8. Sree3070

    Sree3070 Amatore

    Messages:
    98
    Chennai
    Fiat comes up with “focused dealer network” strategy to gain market share

    Article by Ayan Sengupta - Latest News

    With International Automobile Manufacturers wanting a slice of the emerging markets in India, Fiat Motors, has come up with a new strategy to have between 80 to 100 solo car dealers spread across nearly thirty five cities across the length and breadth of India. Senior Vice President of Fiat India, Enrico Anastasio, stated that this move was milestone in Fiat’s underlying strategy to increase its share manifold in the Indian market.

    Fiat proposes to augment its market share to 1.5 percent with a dedicated dealer network, stated Anastasio. He also said that new variants and newer models would hit the Indian roads soon. It would be noteworthy to mention here that Fiat sold approximately 18,000 units which could roughly translate to 0.07 percent of the Indian market which has a whopping demand of 2 million vehicles. The Fiat Punto has increased its market share as compared to last year despite it being priced at just over Rs. 7 lakhs, which is a bit high for this particular sport look segment.



    The second Cafe, a Fiat specialty, has also begun with the timely launch of the Fiat Punto Sports edition in Pune. Incidentally, Maharashtra and particularly the smaller towns in this state have a history of being loyal to the Fiat range of models. The Cafe concept also helps in creating and enhancing the brand image of Fiat.

    Another feather in Fiat’s cap is its interesting tie up with Chevrolet to launch vehicles like Jeep. The new variants of different models and with a tie up with Chevrolet should keep the dealers happy to cater to all segments in the automobile market in India.

    Anastasio clarified that Fiat was in no hurry to increase the inventory of the its independent dealer network as it would prefer to focus on creating a stable and viable network. What is Fiat’s gain is Tata Motor’s loss as nearly 25 Tata Motors dealers have confirmed their desire to have independent showrooms set up to partner with Fiat.
  9. FastLove

    FastLove Superiore

    Messages:
    606
    Mumbai
    Linea 1.4
    FIAT - Chevrolet tie-up??

    that should be FIAT+CHRYSLER .


    Sent from my Nexus One using Tapatalk
  10. Sree3070

    Sree3070 Amatore

    Messages:
    98
    Chennai
    Not sure even i was wondering but this is what written in the article... i just copy and pasted ...

    Sreejith
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