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Discussion in 'Fiat India News' started by Ravi, Sep 10, 2012.

  1. Hi vishnu, if the diesel prices crawl upto petrol prices, i think Fiat will gain by selling more diesel cars. diesel stll gives better FE, and if the huge demand for diesel vehicles come down, Maruti, Tata etc might cut down on the engine supply from Fiat, in turn making people turn to the original. The condition cannot reverse anyway - like 80-90% sales for petrol and 10-20% for diesel. That will not happen.
    1 person likes this.
  2. ramjn

    ramjn Staff Member Janitor

    Messages:
    5,244
    Chennai
    Linea 1.3
    Fiat dumps Tata Motors' dealers

    As it goes for a brand-revival in India, struggling carmaker Fiat has decided to lay off many of the dealers of erstwhile sales and distribution partner Tata Motors, while setting up new solo outlets.

    Ravi G Bhatia, VP (Commercial) for Fiat India Automobiles Ltd (Fial), however, refused to confirm the development. "We are still working on concrete details. All I can say is that there is no obligation for us to retain the existing Tata Motors dealers (selling Fiat cars) even though we will continue to have a preference for them," Bhatia said, adding, "If for some reason an existing Tata-Fiat dealer does not meet the criteria we have set, then we will certainly not hesitate to change him." An e-mail questionnaire sent to Tata Motors on the matter remained unanswered.

    Other High points

    - The factors (for dealer selection) include a location review, service and customer orientation review, financial strength and overall automobile experience. Fiat has formed a committee on the matter that vets the various proposals.

    - Fiat will have 80 dealerships in 67 cities by March next year. "The rest of the cities will also be covered by December next year"

    - Fiat will be hiring 100 more people, mainly in customer-facing roles.

    - "We have to re-build the confidence of customers in the Fiat brand. We need to reassure customers who today are nervous over the sales and performance of our products" - Noted by Mr. Bhatia.

    Full news - Fiat dumps Tata Motors' dealers - The Times of India
    3 people like this.
  3. PatchyBoy

    PatchyBoy Esperto

    Messages:
    2,438
    Bangalore
    Light at the end of the tunnel. At last :D

    Rajan
  4. Viny

    Viny Esperto

    Messages:
    1,742
    :)
    In all this exercise I just hope the existing service centers dont shut the doors, other wise from 160+ to 80 service centers means people have to run to some other city to get the services. And given the rate at which we have to visit service center, driving 300km+ to just visit the service center would be dampener :(

    On the positive side, i seriously hope the product quality needs serious upgrades and the existing customers facing the product quality issues should be taken care off. Other wise bad word of mouth publicity will do more harm to the image of already dead mule.
  5. Surya

    Surya Superiore

    Messages:
    930
    Namma Bengaluru
    Fiat was one of the first foreign car companies to come to India, but has lagged way behind industry growth over the last few years and has a market share of less than 1%, while relatively new entrants like Renault, Nissan, Volkswagen and Skoda have marched way ahead.

    Fiat had formed a joint venture with Tata Motors in 2008 to manufacture, sell and service their vehicles together. The two companies have 167 joint dealerships around the country that will continue to sell and service Fiat cars till March 2013.

    The company plans to have set up of more than 80 independent dealerships by then, covering 67 cities. Another 59 cities would be covered by the end of 2013. Existing Tata Motors dealers, among the first to have been approached by the Italian company to set up separate Fiat sales outlets, appear reluctant.

    “It should make business sense for us. If we realise Fiat is struggling with volumes, the brand and the number of products offered, we cannot invest crores on setting up separate outlets for it. How would we generate returns if we sell 10-20 units a month? Dealers who have been in this business for generations know it would be a gamble to make fresh investments,” said a dealer selling Tata Motors cars for more than a decade.

    After two failed attempts at solo and joint ventures behind it, the company which owns marquee brand Ferrari will make it this time lucky..?
    1 person likes this.
  6. VahanPujari

    VahanPujari Staff Member Janitor

    Messages:
    2,303
    Mumbai
    Very true. That will be a disaster.
    Bad word of mouth has already harmed in last 3 years

    Spot on, Bhatia ji. The key is, do you have wherewithal to do it? Actually, this was one of the key items to do when Fiat re-entered India 3 years ago with Linea!
    1 person likes this.
  7. zenwalker

    zenwalker Esperto

    Messages:
    2,150
    Bangalore
    And all these much be conveyed to executives @ FIAT plan when you guys visit this december. Keep stressing these, its not that they do not know. But just to make them much aware of the ground reality.
  8. Ravi

    Ravi Staff Member Janitor

    Messages:
    6,001
    Bangalore
    Grande Punto 1.3
    First Fiat and Tata has already clarified, you must have received email personally also, they will not stop servicing on existing centers till the new center/s comes up in the city.

    Now to point that the service centers will be from 160+ to 80, understand is that 80 will come-up by March 2013, mostly in metros and major cities. This will be expanded slowly to other cities as well. Its clearly says
    If you see the updates, seems each metro and major cities will have at-least 2-3 new/exclusive dealers and service centeres. With number of sales Fiat is doing, I think this is more than enough. The key would be train their staff properly, where customers can feel some difference.

    Comments like "driving 300km+ to just visit the service center" etc. are certainlly exaggerated.

    Re-building will continue till they taste some success.
    I agree they had chance 3 years back and they failed. Hope this time they put more and sincere efforts.
    3 people like this.
  9. ramjn

    ramjn Staff Member Janitor

    Messages:
    5,244
    Chennai
    Linea 1.3
    Not only the email, I received this letter from Fiat to my registered address.
  10. Ravi

    Ravi Staff Member Janitor

    Messages:
    6,001
    Bangalore
    Grande Punto 1.3
    ^^ But people still have same doubts, I am not able to think how Fiat can convince its customers.

    I am sure, there will be some instances, where service centers (who has chosen not to continue with Fiat) will refuse some services or will stock parts, But these can't take the effort Fiat and Tata has put for transition. Till now (and March is not very far) I have not faced or read (there may be some exceptions) that existing service centers has refused the service.

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