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Fiat India - Sales (2012) discussion

Discussion in 'Fiat India News' started by Ravi, Feb 1, 2012.

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  1. nk4FIAT

    nk4FIAT Superiore

    Messages:
    576
    Hyderabad
    I think Fiat is trying their best to improve quality of cars, opening dedicated showrooms/service centers, Good Advt. in all media and having very beautiful 02 products in their line up. But now customer has too many options. And our Janata has typical herd's mentality.
    So Fiat has to try few more things,
    1. Launch sub 4L car as early as possible.
    2. Launch good SUV like Freemont by end 2012 within 10-15 Lakhs
    These two products will lead Fiat to cross Total monthly sales of 5000+
    If required launch separate Chrysler / Dodge brand and try to get more customers. So people those who don't want to buy Fiat and fed up with Maruti/Hyundai/Ford/GM they will opt for these brands.These two more brands will lead Fiat to cross Total monthly sales of another 5000+. They can produce engines/ cars at Ranjangaon plant itself. So no need of new manufacturing infrastructure. Only they have to set up sales/service infrastructure.
    And we will be happier that finally Fiats are selling in more Nos. (Any way I always count Indigo/Manza/Swift/Dezire/Sx4 and Beat with DDiS as Fiat and makes myself happier) by saying "Sharir aur naam me kya rakha hai, atma/soul (engine) ko dekhiye)
    Last edited by a moderator: Apr 7, 2012
    3 people like this.
  2. VahanPujari

    VahanPujari Staff Member Janitor

    Messages:
    2,303
    Mumbai
    Amit has already explained this in detail.

    Just to substantiate I give you an example. Imagine that you know somebody who has Crores of rupees at his disposal & is keen to set up an Auto dealership. You offer them Fiat Dealership and VW dealership. What will he choose?

    Who will be keen to set up Fiat dealership with such dismal sales track record for past 3 long years? When somebody agrees, you can very well imagine the quality of such dealers for it's difficult to believe that a good dealer will agree. If that happens, the whole story of earlier Fiat dealers and what they did earlier to customers might get repeated.

    Another angle - Why Fiat is looking at only existing Tata dealers to set up exclusive Fiat showrooms? Can Fiat dare to go to other non-Tata dealers to set up Fiat dealership?

    Any dealer whether Tata or non-Tata would do his basic business profitability calculations and would demand it from Manufacturer. He would demand margin, he would demand sales support promotions, ad's to pull the customers to dealership to ensure the minimum no. of required cars can be sold, he would demand credit period in spare parts etc etc so as to break-even and make profit.
    1 person likes this.
  3. fiat_fan

    fiat_fan Amatore

    Messages:
    185
    Calicut

    my responses are in "Bold" letters.

    My openion is that Fiat as a brand who can change the current scenario with ease if they wish to do so. Fiat still holds word's best technologies in the automobile industry so If they could produce right model for india ,that makes all the changes.. in India we are emotional people if they get one perfect model with good after sales it will do wonders for fiat as 800 did for maruti..so dont underestimate Fiat by saying that if Tata was not there fiat's sales would be 1/5th of the current etc.......
    I beleive that its still the door is open for Fiat ..

    ---------- Post added at 09:10 PM ---------- Previous post was at 08:59 PM ----------

    I understood even with out this example and gave him my replies....let me add something to your example. Think the entrepenour is offered VW & Fiat dealerships and the city already accomodate one dealership of VW and now Fiat is offering him bigger commision and new indianised models , engines etc... not he might think twice before rushing to start VW dealership right...??
  4. speedJet

    speedJet Superiore

    Messages:
    856
    Gurgaon
    As mentioned by Amit, Fiat has failed to understand the Indian market. The execution of the Tata-Fiat joint dealership has been miserable.

    A few more things I would like to specify:
    - Dealer has to pay the entire amount to Fiat to get a car. Since cars do not 'fly off the shelves' (I.e. not much demand for Fiat cars) dealers are least interested in blocking their funds.
    - Dealers and Tata sales guys feel that Tata is the company that gives them their livelihood - Fiat is after all a joint partner and can shut shop any day.
    - Looks like some of the strategic decisions are made by Fiat Italy and Fiat India is a mere executor of plans proposed by them. Since FiatIndia does not have much sales, FiatItaly would be making key decisions and ignoring inputs from the Indian team. How else does one explain that Fiat India is not able to understand the Indian market even after so many years?
  5. VahanPujari

    VahanPujari Staff Member Janitor

    Messages:
    2,303
    Mumbai
    The problem is that There are lots of if's and but's in the above theor. Indian customers have given 15 long yearsto Fiat just to produce that right model, make all the changes and give good after sales service. Fiat failed to do it in 15 years. How does anIndian customer believe that Fiat will be able to do this miracle which it failed to do in 15 years. His 7 to 10 lacs hard earned rupees are at stake. Should he plonk it just by getting emotional?
    Sure. Thats the largessee of indian customers, if only Fiat can make it and we all wish it. But can't ignore reality against our wishes.

    Again lots of if's and but's. And how and when will Fiat be able to give much bigger commission, new indianised models, engines etc? A businessman is no fool. Even if a moving brand gives halfthe commission but with 3 to 4 times sales, he'll do his maths and go with it. Fiat knows it very welland thats why the JV. Fiat has not enteredd JV just for fun. Its a compulsion. You are talking about much bigger commission, how much credit period Fiat is giving to dealers? Why spares are not available?
    Extremely pertinent points. With the last point about Fiat-Italy and Fiat-India, you hit the nail on its head.
    Last edited: Apr 8, 2012
  6. fiat_fan

    fiat_fan Amatore

    Messages:
    185
    Calicut

    again rply in bold

    ---------- Post added at 06:51 AM ---------- Previous post was at 06:43 AM ----------

    thats exactly the reason...Fiat Italy still ignoring the Indian market. that should change..

    ---------- Post added at 06:59 AM ---------- Previous post was at 06:51 AM ----------

    One member of this forum reported that two dealers in Trivandrum(kerala) gave application to Fiat-India for getting Seperate dealerships and even after 2-3 months no reply from Fiat!!!. If this is the attitude then how can Fiat make growth. now pls dont again say that nobody will be ready to invest on seperate dealerships.. atleast the Dealers from South india will be able to do so ,from where Fiat is now getting maximum sales.
  7. gopscreative

    gopscreative Amatore

    Messages:
    215
    Chicago
    Fiat needs to learn what to sell first. Why the hell on the earth they stopped palio? Imagine palio with 1.3 MJD with a price tag of price 4.5 laks would have been a killer. An Indian customer will always think like swift engine in palio for 4.5 laks:p.I remember a sale where fiat announced to sell a palio stile MJD SDX at 4.5 lakhs ,But I saw many customers dissatisfied with their booking amount returned. And coming to price of Punto and Linea, although We Fiatians know that its priced very competitively,but a common Indian customer thinks in another aspect. their attitude is like why the hell I need to spend 8 lakhs on a FIAT? Fiat needs to have one USP, and right now i think it should be the cost. A common man doesn't care much about handling,build quality or modern technology.What they care about is Value for money and FIAT doesn't fit in to that category. Give Punto MJD at 5.5 on road and see the sales rise towards north!!
    Last edited: Apr 8, 2012
  8. sungoa2010

    sungoa2010

    Messages:
    2,878
    Goa
    If we see the owners of Opel. They are in more miserable condition than old palio owners. Still beat and Cruze from GM is still doing well.But Aveo suffered because of opel. Not much moved. So let us not draw a straight line for Fiat. It will come back. We don't know which product will click. Every car maker has to undergo some bad phase. What about Maruti's Kizashi? Why XUV is a hit and Grand Vitara a flop? Any justification? Is it that service network is 100 times better than Maruti?
    4 people like this.
  9. nk4FIAT

    nk4FIAT Superiore

    Messages:
    576
    Hyderabad
    Yes Sungoa. That's why I am saying Fiat has to give more option to buyers by launching small car, SUV, Vans, XUV and some commercial vehicles like Tempo traveller. Also they should launch Chrysler/Dodge/Jeep brands with same manufacturing facility but comple different Advt., market, sales and service chain. If Renaults, Nissan, Skoda, Ford, GM can do this in few years, why not Fiat? Who knows Indian customers since almost 70+ years.
    Fiat has to think and act fast.
  10. ENKI

    ENKI Esperto

    Will we keep on having such intense discussions every-time FIAT reports avg. sales figures:confused:?
    If that's the case we all are to going to have hell of a tough time with our patience, dedication & will run out of ideas one-day. You know why, FIAT is not going to post anything encouraging in near future at least.
    Even FIAT knows that:D..!! It good if we keep us updated for sales figure, nothing wrong with that.
    Let's enjoy their GEM of cars, hope not everyone has them & leave these sales stats for economists/business analysts of auto sector;).
    2 people like this.
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