1. Introducing the smashing new Team FIAT T-Shirt !! To order yours click here : Team FIAT T-Shirt

Fiat Chrysler India's new MD - Nagesh A. Basavanhalli - Now Quit

Discussion in 'Fiat India News' started by santhukp, Apr 2, 2013.

  1. nikhil0405

    nikhil0405 Amatore

    Messages:
    117
    Pune
    Linea 1.3
    @prabhjot,

    Since it is a buyers market, there is no point blaming herd mentality. Most people opt for peace of mind when they select a car brand. This is where brand perception comes in. Instead of giving discounts, Fiat can offer free extended warranty on their cars to show their confidence in their products. Also they can give AMC like Tata did for Zest.
    Marketing can follow.
    dadasaheb and prabhjot like this.
  2. prabhjot

    prabhjot Esperto

    Messages:
    2,444
    delhi ncr
    @nikhil0405

    Agreed, but they already DO offer by far (along with Tata) the best standard+extended warranty package, thrice as good as Hyundai, actually. I wonder how many of those 10,500 i20elite buyers last month even noticed that!

    It's not about blame. It's about figuring out what is missing, what is the binding constraint on Fiat (and others') sales, and figuring out how long it will take, and how expensive will it be to fix the problem.

    I guess better engines+amt variants+standout USP equipment (e.g., panoramic sunroof)+marketing+marketing+marketing?

    Guess that is what 2015 will have to consist of for Fiat, and several other car firms too. Hope they have the budgetary resources to burnup! :)
    asimpleson and adisrini1103 like this.
  3. dadasaheb

    dadasaheb Regolare

    Messages:
    374
    Pune
    MH 12 (Ranjangaon)
    Linea 1.3
  4. acechip

    acechip Superiore

    I think a peek at Fiats monthly sales figure deflates any of the fanboyism that (if ever) exists amongst members. (I have been a happy customer of the Santro in the past, but lets not get there). To cut the story short, I think we all agree to your point that it will take time. What I do believe, however, is that Fiat is not taking a hard enough look at both its own products vis-a-vis the customer demand, or vis-a-vis the competition. And hard-enough-look encapsulates everything from marketing to research/analysis to engineering. If they are, then the pace is too slow. They cannot simply let "time" take care of things.
    asimpleson and prabhjot like this.
  5. nikhil0405

    nikhil0405 Amatore

    Messages:
    117
    Pune
    Linea 1.3
    @prabhjot,

    Fiat has been in India since many years and they had the first mover advantage even before Hyundai. No doubt the products are good. I just wonder how long it will take for them to wake up to the market demand and understand the dynamics.
    I don't say that they should go for tin can's like others. Instead they must build on their strengths and be a step ahead of competition.
    prabhjot likes this.
  6. prabhjot

    prabhjot Esperto

    Messages:
    2,444
    delhi ncr
    @acechip

    That may well be true, but how do you then account for the precipitous decline over the last two consecutive years of the sales of nearly all the models of all the non-M/HY/H firms (except where, as with the Scorpio, the Ecosport and the Duster, the East Asian gang don't have products, YET)? Is everyone sleeping at the wheel as Fiat supposedly is?

    I believe it is actually the OTHER way around: it is the customers (MOST of them, at any rate) who are refusing to take a look at what the competition (to Hyundai, Maruti and Honda) has to offer.

    You also own a Micra, right? Now, it could be easily argued that there is no better VFM all-round package? I hope you agree. Now, it too has received a drastic facelift, a huge jazzing up. To what sales effect?

    Now the Micra is the opposite in its automotive spec-s and philosophy to the Punto, or the Polo. Likewise for the Sunny vis-a-vis the Linea or the Vento. And yet, BOTH sets of firms have been getting discounted in sales!

    All that tells me is that there is a closed-minded-ness among buyers, singly and together through word of mouth and peer-group pressure. We all know the possible sources of that: resale value, ASS, absence of happy buyers in the early years of the market (Hyundai had the legions of happy Santro owners, for eg). ETC.

    But yeah, Fiat (and Nissan and VW) have no choice but to keep offering more-for-less. I believe Fiat, like Tata and Nissan, is doing that splendidly ALREADY, as we Fiat owners know.

    And the Avventura is a good attempt, possibly somewhat successful by Fiat standards too (we'll see in Jan-Feb). T-jet introduction, amt-s etc?

    I just do not see where and how this sales knot can be untied with ANY ease. Which is why the removal of Nagesh is sad. Hence the repetitious insistence on my part about 'time': till the all-new 2016-17 launches happen. And the conviction that Jeep + engine and JV sales are the ways to make that long, inevitable time-taking viable/profitable. And sales ARE up 50% year-to-date, so there's good hope, no?;)

    It is terrible that the brand cannot launch the brilliant 500X or the Viaggio or the Panda (Cross) or the 500L or the new Doblo right away, the market just will not allow/indulge it! That is what the 'time' is for: to quietly re-inflate the brand to the point in 2016/17 that it can afford to plausibly launch one or three such terrific new models.

    Meanwhile, yeah like you keep saying: marketing and promotions and 'consumer education', bigger in scale and more telling in composition.

    And these monstrous, brand-corroding damaging discounts! :(
    asimpleson and nikhil0405 like this.
  7. acechip

    acechip Superiore

    Ah yes. The Micra. Is there a Nissan lovers forum in India ? Anywhere in the world for that matter ?. The brand itself evokes a sort of dispassion which is evident in the manner in which the company keeps churning out reliable, frugal cars to the point of ,well, ho-hum.

    But seriously, Nissan has the same problems as Fiat, inspite of having a better brand leverage. Its a Jap, after all. They tied up with Hover India, then disconnected from them, and their after sales service can do with some sprucing up. But, with the Terrano, they are enjoying some mainstream success. They have a range to showcase, right from the Micra to the totally underrated breadbox-Evalia. In a way, I can say that Nissan is a bit better poised than Fiat. Fiat has only released its 3rd model (if you can call it a separate one) towards the end of the last 5 years.
    prabhjot and asimpleson like this.
  8. dadasaheb

    dadasaheb Regolare

    Messages:
    374
    Pune
    MH 12 (Ranjangaon)
    Linea 1.3
    i will put an example of Renault after separating from Mahindra they launched 5 models in 1-2 years and one of them got a big success, actually it is a budget brand or product in Europe and in India they have increased its price many times and almost it is touching XUV500
    but still it is selling. as the herds have accepted the product.
    FIAT desperately needs one block bluster model to come on the radar of customers (herds) it can be any model, they just need to keep trying.
  9. prabhjot

    prabhjot Esperto

    Messages:
    2,444
    delhi ncr
    @dadasaheb

    none of Renault's other models sell AT ALL. And they had no competition, they were first movers: M, HY, H and T don't yet have any cars to offer of the CUV/SUV type at such prices. They will, very soon. The Duster+Terrano's sales are already down 20-30% this year, even before the arrival of that competition. So, the Duster and Ecosport are not good refutations of the 'herd effect' thesis. I suspect the East Asians will clean up at least 70% of the small CUV/SUV market within a year and a half. What market niches will be left then?

    btw, the Avventura was probably chosen as the new launch precisely because the mini-CUV/SUV segment has only one car available, the Ecosport, and no East Asian competition (for now).

    Of course, ideally, the still not-ready all-new b-suv (for 2016) should've been the Avventura in end-2014! Not that this Avventura isn't terrific, i love it personally, but it probably doesn't have the market-chops/pull to sell more than say 3 or 5 hundred a month.

    Yeah, just keep trying, but how to avoid JUST burning cash in such a skewed, oligopolistic market? Tough job being Fiat in India, or being Nissan, Skoda, VW, Chevy....
    dadasaheb likes this.
  10. acechip

    acechip Superiore

Share This Page