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Fiat India - Sales Thread (2014)

Discussion in 'Fiat India News' started by Ravi, Feb 12, 2014.

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  1. acechip

    acechip Superiore

    Dear Prabhjot, I also used to feel the same about Fiat and its products, with my penchant for standing up for the underdog. But now, I have become a bit more circumspect. Yes, I do vehemently defend my car (Tjet) when compared unfavorably with others, (i suppose you and I agree on City in particular), but there is definitely a method to the Indian herd madness.

    After all, a successful automobile maker is more than just the sum of brilliant individual products. There is strategy, marketing, commitment to after sales, and a completely customer-centric focus, that leads to it understanding the customer pulse.
    Something that MSIL, Hyundai and more recently, Mahindra and Honda have done.
    I would still support Fiat products for what they really are- well engineered, robust cars. But Fiat as a brand has to do a lot to instill confidence - they simply are' nt visible enough. Thats the main issue with potential buyers.
  2. varin11

    varin11 Superiore

    Messages:
    821
    Mumbai
    Bombay
    Linea 1.3
    Indians has given Fiat 3 chances and this is 4th so Fiat has to hold on for long term gains.
    Rituraj likes this.
  3. prabhjot

    prabhjot Esperto

    Messages:
    2,455
    delhi ncr
    It is not just a case of being a partisan of Fiat. IMO there has been a recent dis-evolution of our car baazaar's mentality in favour of a sort of majoritarian car-as-reliable-glitzy-appliance. This is why it is not only Fiats that are struggling, so are all firms in the mass market other than the top three East Asian firms.

    And this is despite them being higher priced, version for version, to buy, and to own (ASS labour rates, spares and warranty rates.)

    Whatever happened to the famous Indian nose for 'value'? The market has clearly lost its nose ;-) or its sense of car 'values'! ;-)

    A greater percentage of buyers are closed-minded to alternate value propositions in cars than just a year or two ago IMO: this is the textbook of behavioural economics definition of 'herd effects'/'herding bias'.

    Delighted to see though (and Fiat benefits greatly too, indirectly, what with the 50/50 Ranjangaon JV) that Tata can't sell enough Zests and presumably, later, Bolts!
    Murphy_Fiat likes this.
  4. dadasaheb

    dadasaheb Regolare

    Messages:
    374
    Pune
    MH 12 (Ranjangaon)
    Linea 1.3
    I saw new Linea being tested on Pune-Nagar Road car has white color, temp registration and no any camouflage. wonder why they need to test it again as it is launched already. any new updates coming to Linea ?
    also saw 4 Avventuras in convey with full camouflage being tested and driven really very fast.
    prabhjot likes this.
  5. limraj

    limraj Superiore

    Messages:
    915
    Trivandrum
    Linea 1.3
    Perhaps with 1.6??? Oh, that cannot become true so soon.
  6. acechip

    acechip Superiore

    The Indian herd mentality also has a perceived safety and risk-averse side associated with it. They seek safety not in the product (as in ABS/Airbags), but rather in the mind that there will be spare parts available and the car will have a good resale value. So yeah, the mentality is not entirely unfounded. It is the job of the brand owner to constantly improve brand value.
    What did Hyundai start off with in India ? zilch.
    But they cleverly roped in Shahrukh Khan and created enough market hype . Then, they also launched a good product in the form of the Santro, backed by very good A.S.S. I have been a completely satisfied customer of the Santro. It wasnt exactly a well engineered car, but it was quite trouble free. The rest, as they say, is history.

    Interestingly, the Fluidic Verna was coming up after the rather slow selling and boring Verna. A robust, but over priced car with dodgy high-speed braking IIRC. So obviously, Hyundai learnt some lessons in transtioning to the Fluidic version. The Fluidic Verna, was superbly equipped, but so too was the Linea. So what made it tick ?
    If Fiat has to find any success selling 'cars' they need to really ponder and act fast. They always have the MJD manufacturing to fall back on in any case.
    prabhjot likes this.
  7. prabhjot

    prabhjot Esperto

    Messages:
    2,455
    delhi ncr
    Yes, agreed, herd-effects exist precisely for 'rational-calculating' reasons.

    But once large scale herding sets in, it takes on a life of its own. It gets harder and harder to make a good mark in the wider market: that is the very point and force of herd-effects, they exaggerate and distort the price signals/information in the marketplace.

    IMO herd effects are far stronger now than ever, and so Fiat, VW, Skoda, Tata, Nissan and Renault will find it harder and much more expensive than before, EVEN if they up their game in marketing and ASS, which they are all doing (except, temporarily, for car models like the Duster and Ecosport with a strong USP and little competition from the big, herd-backed firms).

    Another slight consolatory point: Fiat India has revenues 'to fall back on' not only from MJD engine sales but also from a major share in all Tata cars made at the JV plant even if they have no mjd. And also now a nice, exploding, revenue stream from Magneti Marelli for the AMTs being used in Tata-s and Maruti-s (but, ironically, as usual, NOT Fiats! ;-) )
    Last edited: Sep 2, 2014
    bharath likes this.
  8. prabhjot

    prabhjot Esperto

    Messages:
    2,455
    delhi ncr
    Up at night, working. And so:

    From the site 'Management Punditz': Fiat sales of the Punto + Evo: 985 or so. Linea: a mere 138 or so.

    The Linea needs much better (too costly? not worth it given the Ciaz and City and Verna dominance?) marketing support urgently, what with the upcoming 'festive season'.

    The Punto nos. are difficult to interpret: who knows how many of these are in fact discounted old Puntos? Mods, any idea?

    Anyway: up smartly month-on-month AND year-on-year. (Caveat: i20 Elite sold to the tune of 6600 or so! So there.)

    If the majority are Evo-s then ok, good even, given their un-discounted prices.

    But Fiat has to keep spending on marketing activities, which they've been doing a decent job of for the Evo, so far. They botched the launch marketing of the new Linea, i feel, just did not try hard or smart enough.

    I feel they must keep the improved marketing of the Evo going a lot longer, and add the Avventura's to it. Expensive we know, but worth it for Fiat, surely?!.

    The Tata Zest, made in the Fiat JV plant: already sold and delivered 2660 odd

    Polo is up by 300 or so since the launch of the facelift month on month but is flat year-on-year ie., has lost market share despite the great new engine in the facelift.

    Swift sales? Soaring further. Ritz and Dzire: soaring too. (Fiat diesels!)
    Last edited: Sep 3, 2014
    bharath and ramjn like this.
  9. acechip

    acechip Superiore

    It may be factory dispatches of the new Punto Evo.
    But then again, this monthly see-saw ranging from 700 to 900 leads me to believe that Fiat is content with keeping a token presence in India . One can sugarcoat it as a "niche" market, but that is rather delusional.
    I really dont know how dealers can sustain Fiat cars for long at this rate. I mean, does Fiat give them cash to keep their services going ? I suppose they could, given that they make larger profits from the engine/assembly JV.
  10. Ravi

    Ravi Staff Member Janitor

    Messages:
    6,001
    Bangalore
    Grande Punto 1.3
    Aug Sales.png

    • Punto - Though looks some increase, but with EVO deliveries to dealers could have caused it. Let's see how it performs in coming months. If EVO keeps Punto sales more than 700-800+, we should be happy.
    • Linea - This is worrying part, count is falling month by month, and somehow either Fiat is sleeping or not able to do anything.
    prabhjot likes this.
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