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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.
  2. prabhjot

    prabhjot Esperto

    delhi ncr
  3. Inderpreet Bajwa

    Inderpreet Bajwa Amatore

    Amritsar, Punjab
    Linea 1.3
  4. Krunal Bhatt

    Krunal Bhatt Amatore

    Punto Evo 1.3
    Looking at Future plans in first page of the thread, I think Tipo/Agea can be launched in India in 2017.
    My assumption is based on the track record of the FIAT and the calendar (on first page). They were on time in launching Fiat and Abarth brands in India and JUST one year behind in JEEP. So, hopefully we will see something new/fresh in 2017 from FIAT stable.
    I hope they are not bringing Brazilian Grand Sienna, which looks like a car from 90s.
  5. prabhjot

    prabhjot Esperto

    delhi ncr
    @Krunal Bhatt

    My sense is that far from building a say Tipo/Aegea here for sale: FIAT will be cease and desist in India by 2018/2019. Once the Jeep Compass and the Jeep Renegade-like b-suv are launched.

    imo the Brazilian new Punto (x6h) and new Grand Sienna (x6s) for India are best launched in India as Tata-s: the business case can be made, then, in terms of risk-adjusted investment. Not as FIATs.

    Unless they can launch say the expensive 500X and/or updated-for-2017 500L (mainly-for and only because-of rhd exports, like the made-in-India Jeeps) one just cannot see how FIAT as a brand or as-mass-market-offerings stand any sort of chance at all in India, given that FIAT usp-s are not considered relevant in India. EVEN if dealership viability and suatinability etc issues are overcome thanks to the Jeep-s.
  6. Sumit

    Sumit Superiore

    carl_jhonson likes this.
  7. SOOZ_P

    SOOZ_P Regolare

    Grande Punto 1.3

    Good thing is they started comparing now with others :)

    Sent from my Lenovo A7010a48 using Tapatalk
  8. Ashish Kumar

    Ashish Kumar Novizio

    Linea T-Jet
    To add an article on the info posted by @SOOZ_P :
    Fiat Linea, Punto Evo cheaper by up to Rs 77,121
    While automakers across the country have hiked prices at the start of the new year, Fiat has bucked the trend by slashing prices for its two mainstream models, the Punto Evo hatchback and the Linea sedan, by up to Rs 47,365 and Rs 77,121 respectively. This equates to a price cut of roughly about 7 and 7.3 percent for the hatchback and sedan respectively.

    Speaking about the price revision, Kevin Flynn, MD of FCA (Fiat Chrysler Automobiles) India, said, “2017 is a significant year for FCA as we enter a new phase of growth with both our brands – Fiat and Jeep. We want to make this the year of our transformation in our approach towards engaging with existing customers and winning new ones. This thought led us to start the new year by enhancing the value proposition on our feature-rich Linea and Punto Evo, as the first step.”

    The revision in pricing means that the Line is now priced in the range of Rs 7.25 – 9.99 lakh as against last year’s pricing of Rs 7.82 – 10.76 lakh. On the other hand the Punto is now priced in the range of Rs 5.45 – 7.55 lakh as against its old pricing of Rs 5.85 – 7.92 lakh. The Punto Evo Abarth isn’t included in the price revision.

    Fiat hasn’t been able to find traction in India, with an ageing product line up sales last year only amounted to 4,314 units in the period from April to November as against 5,579 units in the same period in 2015. With this price cut, Fiat will be hoping to improve their sales and give their dealers something to cheer about in the new year.

    The change in pricing for the two models is as follows:

    Fiat Punto Evo prices
    Variants Old prices New Prices Difference
    1.2 (P) Dynamic Rs 5,85,568 Rs 5,45,000 Rs 40,568
    1.3 Multijet (D) Active Rs 6,81,117 Rs 6,40,000 Rs 41,117
    1.3 Multijet (D) Dynamic Rs 7,47,365 Rs 7,00,000 Rs 47,365
    1.3 Multijet (D) Emotion Rs 7,92,263 Rs 7,55,000 Rs 37,263

    Fiat Linea prices
    Variants Old prices New prices Difference
    1.4 (P) Active Rs 7,82,126 Rs 7,25,000 Rs 57,126
    1.4 T-Jet (P) 125S Emotion Rs 10,46,747 Rs 9,90,000 Rs 56,747
    1.3 Multijet (D) Active Rs 8,99,570 Rs 8,70,000 Rs 29,570
    1.3 Multijet (D) Dynamic Rs 9,95,407 Rs 9,40,000 Rs 55,407
    1.3 Multijet (D) Emotion Rs 10,76,121 Rs 9,99,000 Rs 77,121

    All prices, ex-showroom, Delhi
  9. prabhjot

    prabhjot Esperto

    delhi ncr
    The fascinating news of Peugeot acquiring the 'Ambassador' brand name for itself as part of their India-entering deal with the CK Birla group ('Hindustan Motors', also associated with mitsubishi and Isuzu, etc) points to something I (and a few others) had posted in other threads here and elsewhere:

    FCA re-adopting the 'PAL'/etc brandnames, in order to do (for eg) Punto/palio 'platform' (old or the new one about to be deployed in Brazil for the new Punto/Palio, new grand Sienna and a Jeep b-suv in India too) India-special retro (PAL 1100, for eg) FIAT. After all Peugeot is planning on using the Ambassador name for some such somewhat retro India-specific model(s), in order to acquire at low cost what is otherwise perhaps impossibly expensive and risky to achieve in india by-now: automatic marketing, memory, name-recall, perhaps some affection if not nostalgia. Like what Vespa scooters have done since Vespa launched its own plant and models here.

    In a sense Fca is attempting something very similar (albeit not on an India-special basis) with the by-definition desi-historic familiarity with the 'JEEP' name in India. Especially if the b-suv will be very Willy's Jeep=Wrangler=Rengade like in its 'retro' styling, round headlamps and all (boxiness etc). Esp once their full on advertizing etc takes off in the wider mass media, just/somewhat before the Compass launch in august/oct this year, once most/all the 35-40 Jeep and/or 'Combined fca' dealers are fully open and ready.

    A play on FIAT (in India, of old, 'good old'=pal, delite, 1100, padmini, bambai's kaali-peeli etc) via a retro styled 'new Punto'/'new Grand Sienna/Linea') COULD really be the one way to get some 'momentum' back to the brand in terms of initial sales, ONCE, that is: the dealers and service centres are fully settled and hopefully doing-well-enough JUST via the new Compass and the Jeep 'new Punto' avatar/b-suv that follows it.

    One can think of no other way back for the brand, short of the most-unlikely use India as rhd export base for say a premiumized model like the 500X @ 14-16 lakhs at best.

    Whether fca could be bothered to finance such an India-centric Fiat-only investment when they evidently have so many other 'levers' to pull here and in Brazil plus Asia/China (namely the 1.4 million sales-strong and growing ever faster in these regions Jeep, engines, magneti marelli businesses, alfa romeo, maserati and by 2019 Chrysler hybrids/ev-s too, to go with a still strong and growing FIAT in LatAm)...?

    @asimpleson @puntophile
    puntophile and asimpleson like this.
  10. moksh

    moksh Superiore

    Linea 1.3
    Yes true a 500x sits best between linea and compass . But on other hand it can give tough competition to renegade from jeep if both are launch together.
    prabhjot likes this.

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