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Fiat denies rumors of India exit

Discussion in 'Fiat India News' started by ramjn, Apr 26, 2017.

  1. ramjn

    ramjn Staff Member Janitor

    Messages:
    5,350
    Chennai
    Linea 1.3
    Off late I have been hearing and coming across lot of rumors across forums that Fiat is planning to exit from India. Our member @Venkat asam raised this concern directly to Fiat and he got a clear response from the Fiat team. I believe it is better to create a separate thread in this regard which would greatly help those concerned about Fiat's existence.

    Fiat's Response

    Good evening , Greetings from FCA India!

    Thank you for sharing your contact details & reaching out to us with your query. There may be a lot of information on the internet that may not be necessarily true.

    It is a great gesture that you reached out to us directly to seek a clarification on this subject instead of believing the hearsay. We welcome your decision to own a Fiat Punto EVO/Fiat Linea and we assure you of our best services always. We understand your concern on Fiat in India but please rest assured that both our Fiat and Jeep vehicles will co-exist in India. The Fiat brand is as important to us as Jeep and we will ensure our Fiat customers are properly taken care of despite the introduction of Jeep in India. You may agree that Fiat is an established brand in India as it has been present in the country for around 60 years, whereas the Jeep brand is still new to Indian customers (launched in 2016) and we are working towards making customers aware of the brand and the SUVs. In fact we have already opened new dealerships which now sell our Fiat, Abarth and Jeep vehicles, all under one roof. You will hear of more such dealerships opening in the next few months. We are fully committed to our customers in India and we recognize the fact that Fiat customers require equal attention, which we will give you. Thanks once again for considering to buy the Fiat Punto EVO/Fiat Linea! As per your trail mail, currently there is no official update regarding launch date of Fiat Tipo in India. As soon as it is confirmed you will be informed accordingly.

    Thanks to @Venkat asam for sharing the response from Fiat. :)

    Link to original post - Upgrade to Figo, What car?
     
  2. ghodlur

    ghodlur Esperto

    Messages:
    2,640
    Thane
    @ramjn

    Thanks for the update.

    Merely existing in India is not sufficient as they need to be profitable too. At present Fiat is banking on the only two Fiat products Punto and Linea and has been flogging them for a decade or so. Without any new models being introduced, Fiat will soon exists only on paper in India. This will also impact their Jeep sales too IMO. With so many models under their stable in Europe and South America countries, what is stopping them from bringing those models to India? While their so called Fiat services is already doubted by many and is the key to sales growth, even that revamp is yet to happen.

    In other words a bleak future for Fiat in India.
     
  3. ramjn

    ramjn Staff Member Janitor

    Messages:
    5,350
    Chennai
    Linea 1.3
    @ghodlur

    Yes. I agree. Fiat need to come up with more products for India. But still as long as Maruti sources the engines, Fiat has little reason to worry about profits as they are making good money out of it. But they can't just merely operate as an engine manufacturer for long. I believe next 2-3 years is going to be crucial for FCA in India.
     
  4. Turbothinghy

    Turbothinghy Esperto

    Messages:
    1,230
    Pune
    Punto Evo 1.3 90 HP
    I guess the next set of Fiat vehicles is totally dependent on how Jeep performs. If it performs decently FCA might decide to get the Punto and Linea replacement in 2018 Q3. On another note, I fear that Jeep sales might get negatively affected due to Fiat's brand name in India. Here, majority of the people still relate Jeep with Mahindra :oops:

    The Compass really looks great. I just hope it gets priced attractively. Lets see. Testing time for FCA.
     
    Ganges likes this.
  5. SHASHANKREDDY

    SHASHANKREDDY Superiore

    Messages:
    655
    Location:
    HYDERABAD
    Hyderabad
    Grande Punto 1.3
    Fiat does not have that small car which can run the bread and butter of Dealerships. Probably they would have continued Palio stile as it is still running in Brazil.
    I wish they would have brought small car like Renault did but it wont happen.
     
    Last edited: Apr 26, 2017
  6. limraj

    limraj Esperto

    Messages:
    1,124
    Trivandrum / Bangalore
    Linea 1.3
    Introduction of an all new model as a replacement cannot happen in such a short span (1year 3 months), unless FIAT has started the activity one or 2 years back.
    For the Koreans, who has a faster design to launch process, it takes more than 2 years to introduce a new car. Ref. Kia entering India.
    http://auto.ndtv.com/news/kia-motors-first-plant-in-india-might-come-up-in-andhra-pradesh-1656970
     
  7. prabhjot

    prabhjot Esperto

    Messages:
    2,902
    Location:
    delhi ncr
    Sigh.

    I've been posting for ever on how (a) current FIAT owners who are in any case so heavily concentrated in the largest cities have NOT yet been ditched in any way: their cities have had at least one official fass centre, even if third party like rs motors in mumbai or drs motors in gurgaon AND even if dealers had shut down. More than can be said of many other firms like vw, skoda, nissan, chevy who've also been seeing numerous dealerships shutdown.

    (b) JEEP only ensures that current FIAT owners can enjoy a higher quality and quantity of service and spares attention, since it ensures viability and more importantly sustainability for dealerships and their service operations in the largest 35-40+ cities, esp since many third party or former-dealer service operations continue unabated and in fact are being added to supplement the new Jeep or the combined Jeep-cum-Fiat dealer+service guys.

    (c) Marchionne said clearly: "FIAT cannot relive its history in India. FCA must play to its strength which is JEEP". i.e., FIAT the brand has no future 'life' here by-now (for whatever historical legacy reasons, with whatever the blames and faults involved in the past).

    (d) the point c above has NOTHING to do with them ensuring service quantity and quality coverage in the say 30-50+ largest cities for current FIAT owners, since service will now be handled either by the stronger Jeep-centric new or upgraded-combined-fca dealers OR by third party (in some cases: former dealers who find service viable but not sales, given low sales and high land etc rentals) OR in many cities (e.g., dilli ncr, mumbai, pune, calcutta, chennai, bangalore etc) by BOTH as options.

    (e) FCA is among the most profitable automotive operations in India (whether oem or supplier), and will remain so given the large investments both tata and fca have just made at ranjangaon for jeep and other tata suv-s, AND given the large rhd Jeep exports business being added to their portfolio, and the localization of now even the 2 litre mjd2, an engine that will also be used by not just tata but very likely by other firm(s) as well, come 2020 bs6 implementation (or so i think is most likely.)

    (f) It is not merely a matter of the Compass. there will be the Renegade too (less than 17/18 lakhs) AND the 'new Punto/palio=FIAT ARGO' (x6h) will in fact come BUT as a JEEP badged and styled and specced b-suv (around 4m.) All 3 by end 2019 or so, it seems. All 3 of these suv-s ARE in fact FIATs: fiat platform, fiat engines and transmisisons, fiat build quality and FIAT manufacturing technology at Ranjangaon, which as we saw at the Compass introduction is perhaps the most advanced and automated and high tech now (post investments for export quality JEEPs) in the entire Indian auto industry.

    (g) FIAT is also being woundup in China, with the whole emphasis on the very successful there JEEP, plus AlfaRomeo and Maserati.

    (h) imo if they bring any all-new FIATs to India for local manufacture (with low or next to no rhd export market demand or need??) it will be post-2020 when the whole bs6, gst, crash safety, diesel crackdown by courts, possible ev-powertrain subisidies uncertainties and costs etc are fully known and can be planned for and investment calculations/potential-business-case-planning be done.

    (i) the last point above has nothing whatsoever to do with service quality and geographical coverage for current FIAT owners since that is catered for by the Jeep centric dealers+service centres and the third party offical-FIAT ones, now/soon to-be under MOPAR.

    (j) the quote from FCA India above only states that they will ensure service coverage and quality and spares availiability etc via Jeep etc in all large cities/the largest say 40-50+ cities. It nowhere says they will launch all-new FIATs. imo that is an honest and accurate statement from them. Service coverage will be maintained and improved-via-JEEP-centres, but for current FIATs on-road not for future owners of future all-new FIATs. Even if the decision about all-new FIATs in and for India is still open at fca asia-pac hq: imo we can forget about any such at the very least till 2020 (at the earliest.) IMO that's the correct approach for everyone. Current FIAT owners are much better off via Jeep centrism in India vis-a-vis service geographical coverage and wrt quality+quantity than they'd be with all-new FIATs. Why? Because nobody except us will buy FIATs, even if all-new, in India. The brand is, as Marchionne recognizes: beaten-up-to death, i.e., "...cannot relive its history."

    (k) FIAT's beat up hearsay reputation will affect JEEP, yes, but vastly less so than if it were all-new FIATs! In any case, for fca Jeep is about exports as much or more than it is about India-sales, making the business case for everyone including dealers much better (via export economies of scale and profits, making Indian sales and pricing and margins etc more competitive and suatinably so.) Moreover: the market's veering so fast and so much towards suv-s big and small at all price points that FCA is very correct to focus exclusively on THE suv-brand (Jeep) rather than on FIAT+Abarth hatches and sedans that no one in India sees/percieves any USP in buying, given the total dominance of 2-4 firms and brands only (ms, hy, maybe tata, maybe mahindra, maybe a bit honda or toyota) in the mass market hatch+sedan spaces.
     
  8. Sumit

    Sumit Superiore

    Messages:
    696
    Location:
    Munger
    Big relief. Long live FCA India!
     
  9. kinetic

    kinetic Amatore

    Messages:
    56
    mh
    Retro / Classic FIAT
    Does that mean the linea is still in production?
     
    NirmalNK likes this.
  10. Krunal Bhatt

    Krunal Bhatt Amatore

    Messages:
    149
    Location:
    Ahmedabad
    Ahmedabad
    Punto Evo 1.3
    @kinetic yup.. and will remain there in production, till picture gets clear for FCA. They are supposed to launch a new sedan in mid 2017, BUT, after reading posts in this forum and looking Fiat's condition in market, I don't think they will do that. At most they will make some cosmetic changes to current lineup.
     

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