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Fiat India - Future Plans

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

  1. prabhjot

    prabhjot Esperto

    delhi ncr

    As i have been analytically posting: Toyota, Chevy and now Ford too are on a major 'hold', slowdown vis-a-vis their India market hopes and therefore investments and efforts. VW and Skoda already are (nothing new for the 'mass market' segments til at least 2018.)

    Accumulated losses of thousands of crores, plants that cannot be shutdown (GM's halol plant in gujrat), massively expensive all-new factory-outputted (in predictably: gujrat, based on unusually large land and tax subsidies) India-special models dismal failures (Ford Figo+Aspire), dealership closures compounding already given (since not ms, hy, tyta, honda) mistrust of dealers and after-sales (VW, Skoda, Chevy, Tata.)

    Add to that the fact that the market is in a margins-destroying slowdown since 2012 unalleviated by the nominal statistical sales-number growth caused by the bumper sales of uber and ola etc taxi cabs at cut-rates (for just a few firms), and the gobbling up of even-more marketshare and segment-domination by just 2/3 firms whose all-new models have sold ragingly, disproportionately well, at everyone else's expense, largely a function of NOT of product (design/engineering/'quality'/safety etc) but of these firms' already pre-existing strengths in dealership expanse, in the resale market, in sheer-scale, in price-fixing of spares etc at dealerships ensuring dealers' profits, and of course in trust and familiarity by first time buyers or second-time ones who've already been 'educated' in car culture by their first purchase of either a Maruti S, a Hyundai +to a slight degree by Honda, toyota, and Mahindra too.

    The India and the 'make in india' stories have proven TOO story-like (unreal) for all car firms barring just 3 (MS, HY, Mahindra.) Other than Renault-nissan (still chasing the chimera of India as the next-china, perhaps successfully with the ultimate low cost, low quality car strategy: the Kwid) and, ironically, FCA (with the new investments in ranjangaon for Jeeps+new dealerships coming up, et al) everyone else is in discount-India-as-a-market mode, including poor Honda that had invested so much in several (poor quality!) new models and a first-ever (poor) diesel engine, only to see MS+HY run away with all the malai and the makhan leaving them with further losses.

    IN SUM: fca's strategy to focus on exports of premium-mass-ish models from an all-new-to-the-market yet potentially-distinctive-and-powerful brand (Jeep) seems the right one, then, given so many other firms' bad experiences and failures (for whatever reason) in india. The issues with FIAT are only slightly amplified versions of much more widespread market/culture characteristics.

    As all over the world, FCA India's trajectory is moving to a different rhythm, being a peculiar, very young, recently-merged multibrand firm, that has only recently started its global all-new model blitz (across brands, including Jeep and Fiat, plus Alfa+Maserati) and world (non-usa) market-regions.

    Of course if the Jeep localized and very-affordable c-suv and the Renegade-like b-suv do not succeed either, well then, too bad. The Indian market would've proven as impossible and unreal for FCA, hitherto profitable in India, as it has been and is for several other global majors, not excluding Toyota, VW group, Ford, Chevy, Nissan and Honda.

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