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Fiat India - Future Plans

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

  1. adisrini1103

    adisrini1103 Amatore

    Messages:
    243
    Coimbatore
    Linea 1.3
    Did any of you guys notice that the new punto under test , is also tested for 4x4 capability and is pretty sure to drop the Punto name.
    All this in a modified (stretched) Palio Platform.
    Does this mean we will also get the punto in the existing platform + few kgs lighter.
    Since it will get a 4x4 capability, are we going to get an Avventura that doesn't look like a punto and more like a SUV??
    does this mean the micro-suv we are getting would be the child of Fiat & Jeep India that sits below the Creta or at least priced below??

    As of now one thing is clear, Fiat India is going nowhere but asking us to leave the brand.

    Every other manufacturer has Upped their game except Fiat and GM These two are sitting ducks now.
    Even though Chevy showed something in the auto expo the Beat cross would do some thing, I doubt the essentia would do anything.

    Are these guys planning to abscond india or what?
    consider fiat upgrading its facility in Pune, What are they going to do about the dealers that are constantly reducing in numbers instead of increasing??
    and how can they still not find a Dealer in mumbai? cant they just set up one themselves like what TATA does?
    Raj_pol, asimpleson and PradeepM like this.
  2. SwifttoPunto

    SwifttoPunto Novizio

    Messages:
    47
    Bangalore
    Punto Evo 1.3 90 HP
    Why Fiat is not doing anything or not taking any risk? It is because they have secured business here. If a person has a secured job/profession he will never take any risk and hence he will not achieve anything substantial. Lot of us fall into this bracket. Similar logic here, they have secured and less risky business in the form of Engine sales and now AMT sales. So they are not ready to take any risk here. If they did not have these revenues, I am sure they would have put lot more effort to crack this market. It is a large market in volumes and nobody wants to ignore or can not ignore. They will have to justify to investors such ignorance. Presence in this kind of market is very essential to balance out risk, presence, growth and also to understand where and how to move towards future.

    However, Fiat's secured business will not give them a return equivalent to their potential and also this will not be a very long-term.
    Also introduction of Jeep brand will not help them to establish Fiat brand later. If they have to start Fiat brand if they discontinue now it will be from scratch. Hardly very few customers recognise Jeep-Fiat relationship and take comfort to buy Fiat brand later. And this is more importantly in India where building trust and service comfort is more important than just well engineered products.

    I am talking of simple logic and common sense and I hope they act sensibly.
    prabhjot likes this.
  3. prabhjot

    prabhjot Esperto

    Messages:
    2,441
    delhi ncr
    In any case, Kevin Flynn, a sales and marketing guy, has clearly been identified and hired for Jeep in India, less so (if at all?) for Fiat. At least till the c-suv manufacturing is tuned, up-to-spec-and-speed, and has begun retailing. That much is clear.

    FIAT is NOT a growth-in-Asia-pac brand for FCA. Their quarterly/annual investor reports over the last 2+ years have repeatedly zeroed-in on Jeep, and now Alfa, as the 'global' growth-brands. FIAT is not being pushed at all in China either, since theViaggio+Ottimo did not 'hit' well.And clearl, for FCA asia-pac = china + maybe australia, principally.

    The problem is that India is an anomaly for FCA. It is market that overall is stagnant since the slowdown that began in 2012. And the Fiat europe models cannot work here, pricing-wise, size-wise, engineering-spec wise, etc. In the absence of a new Brazilian Punto+new Grand Sienna, what else could the brand offer?

    They initially thought dealers were the issue, hence the ditching of Tata retail and ASS, going independent. Followed by, and we often forget this: india-SPECIFIC facelifts for the Punto and of course its 'cross' avatar the Avventura, also india-specific.

    Since those moves failed.....they've instead shifted weight onto JEEP, since the all-new India-workable FIATs, i.e., the new brazilian ones, are not ready, are still only now undergoing road-testing, for launch there in 2017.

    It takes at least a year if not much more to setup the supply-chain, the vendors, the qc, the plant and tooling modifications and revampings. ERGO: 'delay'.

    Toyota, Nissan and VW is also in the same boat and not just Chevy+Fiat: they do not yet have the India-viable, brand-appropriate models in their global portfolio, meanwhile the market's in slowdown (other than for 2-3 all-new models from 2-3 firms).

    What those firms have done is keep financial losses to a still-large minimum by switching to exports in a major way+aggressive promo-s and discounting, cheap-financing etc.

    BUT: it has not worked EVEN for these firms, their sales have been down and down, too, over the last 2 years,and don't forget that they have worse dealer-closedown problems than Fiat (Chevy+Nissan) and have much more expensive and many more dealers too to keep-viable. On a per-dealer basis FIAT sales numbers are no worse, indeed probably better than a few firms i think?

    Indeed, whittling down the number of dealers in competition with each other in the same city (eg in delhi ncr) is a healthy thing imo, financially for the remaining ones....provided those dealers then recieve all-new models (either Jeep or Fiat or both) when those are ready....which can only be 2017 or more likely 2018, since the Jeeps apart, there are no India-viable or do-able (for heavy localization) models available till the new brazilian punto+grand sienna+'new avventura'+small-Jeep are ready there.

    As i've pointed out often earlier: India is not an easy sourcing market for Fiat-brand exports, whether lhd or rhd: so exports are not an easy way out either. The geography of the Fiat brand and of its available manufacturing footprint and capacities does NOT make Indian-made Fiats easily exportable-in-numbers.

    However, it does seem to me that a premium-priced (part localized only, sub-16/17 lakhs, also for rhd exports) 500X and/or L, to go with the higher-volume new-Punto-based small Jeep+its Fiat 'new avventura' twin+ an Abarth or two would make for an optimal solution. Exportable in rhd and/or lhd, saleable in decent numbers here via a much-smaller but more-viable and therefore (?) better dealer-body. + the cbu or ckd bigger, more-expensive JEEPs.

    My fear is that they'll stop at the small new-punto-based Jeep, or, much-more optimistically, use that model for export volumes and higher-margins which then enable the investment-risk of more dealers+that Jeep's platform and powertrain twins--the new Punto+grand Sienna(barely exportable)+new Avventura (maybe exportable to europe)-- to happen just-for-India.

    @SwifttoPunto
    Turbothinghy and SwifttoPunto like this.
  4. Krunal Bhatt

    Krunal Bhatt Amatore

    Messages:
    65
    Ahmedabad
    Ahmedabad
    Punto Evo 1.3
    @asimpleson Going aggressively is always a good option. But I think, they already did in 2012/13/14. After "divorcing" TATA and setting up dealership network on their own. And that was reflected in sales figure of late 2013 to late 2014.(of course not that good, but mostly in thousands AND waaaay better than April-2016 sales, 486 ONLY.:banghead::vomit:)

    But all we can do is discuss. FIAT is not listening to their die hard fans who listened to their heart not to their head/relatives/friends while buying wonderful machines called FIAT.
    --- Double Post Merged, May 4, 2016 ---
    And yes, dealership in Gujarat is not that bad,YET. (Touch Wood). We have dealership in all big cities of Gujarat. Even sales might be better then other states.(I have heard that Kerala state and Bangalore city has highest buyers of FIAT).
    When I went for delivery of my car already 4-5 cars were there to be delivered on same day,including an Avventura Powered by Abarth.
    Last edited: May 4, 2016
    prabhjot, Raj_pol and PradeepM like this.
  5. Raj_pol

    Raj_pol Regolare

    Messages:
    495
    Bangalore
    Punto Evo 1.3
    @Krunal Bhatt Yes Kerala, Karnataka are among the larger markets down south for Fiat.
  6. Krunal Bhatt

    Krunal Bhatt Amatore

    Messages:
    65
    Ahmedabad
    Ahmedabad
    Punto Evo 1.3
    Is there anyone from FCA in this forum?
  7. vista7155

    vista7155 Regolare

    Messages:
    304
    bangalore
    ^^ By Chance if somebody is there they will not come out and acknowledge:D.
    Probably you know the reason.
  8. Krunal Bhatt

    Krunal Bhatt Amatore

    Messages:
    65
    Ahmedabad
    Ahmedabad
    Punto Evo 1.3
    @vista7155 .. So true,, but I would say there is just one month to go... they can "come out of closet" :wacky:;)
  9. prabhjot

    prabhjot Esperto

    Messages:
    2,441
    delhi ncr
    http://economictimes.indiatimes.com...dealerships-in-india/articleshow/53625777.cms

    IMO great approach: combining JEEP and FIAT brand sales and service into one, across the board. JEEP gets a wide distribution network, the dealers get a far-greater chance at viability and sustainability and longevity, and Fiat gets a 'leg-up' in terms of brand perception (by association with JEEP) while it waits for all-new models, as well as (surely! ;-)) improved sales and after-sales process and HR quality assurance. The new combined dealerships will be branded 'FIAT CHRYSLER Automobiles' apparently: also addressing the widespread-in-india perception that FIAT is some tiny maker of tiny cars, rather than the automotive, multibrand giant it is.

    REM: Jeep is going to go relatively affordable/accessible in India, what with the localized c-suv and the Renegade/sub-Renegade model to follow. i.e., unlike China or Europe or Brazil where JEEP is positioned very much at-a-notable-premium, here it seems they want to situate JEEP just like they do in the usa: strong, distinctive, historic brand identity and 'equity' but not a 'luxury' brand as such.

    FCA india is and has been a VERY major global r&d technical centre for JEEP, a legacy pretty old and experienced centre from the pre-merger Chrysler Corp. A lot of the engineering analytic/simulation work for the European+USA Renegade and 500X was, for example, done here. i.e., JEEP has an old presence here in many ways, already, and imo FCA India can and has the technical ability to indeed push into the somewhat-mass-market price-points (say 12 lakhs+) as far as costing+pricing goes without compromising JEEP brand engineering-dna-values too much?

    Caveat: am unsure of whether this will be across-the-board, or only outside of the biggest cities, or on a selective basis. The latter i suppose, given that (presumably) not all existing FIAT dealer-principals would have the financial muscle for the new investments needed, and/or the managerial 'quality' to meet this, apparently much-higher standard.

    Plans change etc, it is true, but it would appear that this FCA-branding of the dealerships does imply that FCA is entirely serious about launching all-new FIAT models too (in 2018?) Presuming the minimally successful launch of JEEP, the brand and esp the localized c-suv next year, that is.

    Looking like a good case of 'der aye par durust aye' FCA india: late and slow BUT solid and profitable for all concerned, including current Fiat owners, fans, loyalists and indian car-baazar well-wishers?? Perhaps, perhaps, let us wait just a bit more.:)

    @PradeepM
  10. SwifttoPunto

    SwifttoPunto Novizio

    Messages:
    47
    Bangalore
    Punto Evo 1.3 90 HP

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