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

Fiat India - Future Plans

Discussion in 'Fiat India News' started by Ravi, Dec 6, 2012.

  1. gauravp

    gauravp Amatore

    Messages:
    86
    Pune
  2. vista7155

    vista7155 Regolare

    Messages:
    314
    bangalore
    ^ I always follow the above site and the author has written fantastic articles about VW also and he writes very detailed analysis.
    He is 100% correct in analysing the fiat issue.
  3. prabhjot

    prabhjot Esperto

    Messages:
    2,456
    delhi ncr
    Except that he is more than a little under-informed, less-than-updated on FCA India's goings-on esp the new investments with tata on Tata and Jeep SUV manufacture already underway in Ranjangaon, and the whole question of exports-first. He seems unaware that FCA will be locally making one or two new small Jeeps at sub-Fortuner prices, also for exports, by 2017, for which a total investment between tata and FCA of 450 million dollars is being invested already.

    And has not addressed the central issue: how come FCA in India is profitable when everyone else bar MS, HY and Mahindra aren't (sans exports)? Only by answering that can a judgment be arrived at about the apt strategy to be followed by any car firm in india.

    Moreover, he seems to have just deployed common Fiat-owner/critic hearsay and gossip and not deployed any analytics or research or interviews of his own. I would've appreciated the article if it had appeared say 2-3 months BEFORE the launch of the Avventura.

    At that time, he was full of praise for how Fiat was rebounding and successfully re-launching itself out of the ICU of the car market. Hindsight wisdom does not amount to any sort of expert analysis. The FCA plan was known almost a year and a half ago, they've only stuck to that plan pretty much. He should've written this piece a year ago, rather than now, when the information he's using is dated, and when FCA's joint Jeep investment-focus, mainly for exports, with Tata, is the bearer of FCA's strategy from now on. Even the 'New Avventura' and the new Punto in the plan from a year ago for end-2016 and 2017 are heavily for exports.

    He is wrong and naive, IMO, to suppose that the Fiat brand has much of a healthy-sales chance in India at all, IF ONLY they launch that one or those three all-new models. He is even more wrong to presume that sales-numbers have any simple 1-to-1 correlation with profits or return-on-investment.

    PS: i had already posted a reply to this article on his site last week, which i first sampled after gto of team-bhp recommended it. Recently, gto withdrew that recommendation, saying the work had become shallow and unknowing/unresearched: I agree and this piece on FCA proves it.
    Vidhyashankar Kannan likes this.
  4. KKAUL

    KKAUL Amatore

    Messages:
    205
    delhi
    Grande Punto 1.3
    @prabhjot

    Let Suzuki develop there 1.3 MJD which they are doing desperately and then we will see how Fiats balance sheet moves in INDIA. I know the engine wouldn't be that good but will still sell like a hot cake that is for sure.With rising overheads in countries like India and china in near future it would not be advisable to put up a export oriented unit in these places. Due to the rise of Unemployment in developed nation there is a strong feeling to buy the product manufactured in their own country among the citizens.This is really going to upset Indian export which is now happening.If Fiat really was worried about its concrete presence in INDIA then it would have brought much better engine and drive chain to kill the competition but the shear fact is they are not coz they have analysed the Indian market thoroughly and have understood they cannot sell in mass.
    Just Try to visit any TATA or FIAT TATA JV factory and look at the work culture there and then go to some Jap factory like Suzuki and see the difference.The equipment level in the first will be much better but the efficiency of the second will be far ahead.
    Fiat group is involved in many other activities in India which are more profitable and has more than 500 takeover companies so there focus will be on that rather than some new launches. All they will do is presenting a old bride in new dress ( BHUDI GHODI LAL LAGAAM). Since you are that much informed financially and technically please answer one simple question honestly in Yes or NO . Would you consider Aventura for Buying in present avatar?

    You are very much right that sales no. does not tell about the health of company.

    Thanks and Regards
    KK
  5. Raj_pol

    Raj_pol Regolare

    Messages:
    497
    Bangalore
    Punto Evo 1.3
    @prabhjot On a global scale FCA still has a large debt issue and the CEO seems to be desperately looking at candidates for mergers. Also, the healthy sales is from the Jeep side, Fiat's car's even in Europe are doing just about okay in terms of numbers. They are far from a turnaround and need a lot of smart thinking and probably some luck to do well and survive.
    bharath and prabhjot like this.
  6. Deepesh Rathore

    Deepesh Rathore Timido

    Messages:
    1
    London
    Fiat Enthusiast
  7. prabhjot

    prabhjot Esperto

    Messages:
    2,456
    delhi ncr
    @Raj_pol

    Like the new Alfa Romeo-s....now you see why blowing up a few hundred crores trying and failing to get Hyundai-type buyers to go your way in India may not be a prudent use of capital/time/human resources etc? Better to go Jeep+Alfa globally, including India, chic but more expensive Fiat 500-style cars in Europe, to go with the American muscle cars, minivans etc. And cultivate the already fertile and lucrative relationships with the likes of Tata Motors and Maruti Suzuki....
    Vidhyashankar Kannan likes this.
  8. KKAUL

    KKAUL Amatore

    Messages:
    205
    delhi
    Grande Punto 1.3
    @prabhjot

    very well said by the author
    That is exactly what I was emphasizing on my post. It is now not very easy to put a export oriented unit in a third world country by shutting your operations in your parent company . Due to large scale unemployment the local government or the the local people won't allow you on top of that there is another problem which is growing which will surely hamper the exports i.e is our MAKE IN INDIA. This theme though was launched with good intentions but is surely developing more foes than friends.
    To develop a technology it takes years of hardship and dedication so no body will allow you to even have a smell of that and actually why should he.
    There is no doubt that FCA has good control over technology as far as engines are concerned and they will not share the technology with anyone. Why should we indians be part of that technology for which we haven't worked. FCA will keep on rolling this 1.3 MJD Jugaad and we will be happy driving these.
  9. Dr. Fixated

    Dr. Fixated Novizio

    Messages:
    40
    Hyderabad
    Linea 1.3
    Is there any reason why there is no plan to produce AMT units on a mass scale for the Indian market? Potentially they could (very easily?) sell more than 1 Lakh units per annum. Maruti Alto & Celerio, Tata Nano, Bolt & Zest models are already using this technology. Given the witnessed success and reliability levels, manufacturers may be willing to embrace this technology for other models as well.
  10. ramjn

    ramjn Staff Member Janitor

    Messages:
    5,245
    Chennai
    Linea 1.3
    One Lakh units? Are you joking?
    I am shocked.

Share This Page