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FIAT India Sales

Discussion in 'Fiat India News' started by amogh, Feb 5, 2015.

  1. rusticnomad

    rusticnomad Amatore

    Linea T-Jet
    prabhjot likes this.
  2. prabhjot

    prabhjot Esperto

    delhi ncr
    You should NOT be impressed be: Carlos Ghosn has been coming here for years.....and consistently making EXPENSIVE managerial gaffe after error after disaster (from Logan to Hover to Datsun to Lodgy to... now Kwid). What's more Renault-Nissan with this hyper-pro-active ceo, huge investments, clean-sheet brands and nameplates, celebrity advertisers, first-mover car-models (Duster).....has ONLY made HUGE losses in India (other than via exports), so much so that they're laying off hundreds of workers as we speak at their tamilnadu plant, and are owed 1500-2000 crores of tax-subsidies by that state government without which their local operations are financially beggar-like, that's how poor their financial record is in the Indian car bazaar!

    FCA is, on the other hand, profitable in India (without exports, that too.)

    "NEVER judge a firm by its ceo-on-tv/PR event, never judge a car company by its sales figures or the spiffiness of its dealers etc etc etc", some wise-guy might've said, or will have, or has just!;):p
    --- Double Post Merged, Sep 13, 2015, Original Post Date: Sep 12, 2015 ---
    THE nail has just been hit right on the head by you with this comment!

    The thing is: most (perhaps 90%+, certainly 85%+) carbuyers in the Indian mass market or even the luxury one, for that matter, buy less the car, and more the assured sales-figures of the car!

    Economists talk about consumers responding to 'price signals'. Well, in the Indian car mart they respond even more to the 'strength of numbers signal'. What sells.....sells, EVEN at elevated prices, what does not... does not, EVEN at discounted prices, no if-s, no but-s, no 'because', no 'if only', no 'reason' nor 'rhyme'.....

    Behavioural economists and consumer/marketing analysts call it 'momentum': the nearly-purely quantitative force of numbers feeding-back-looping into a cascade of buying/not-buying qualitatively similar or indeed, as in Fiat's case, qualitatively much-superior products.
  3. vista7155

    vista7155 Regolare

    My dear friend it is a worrying topic. I don't know about others but for me it is because if the company is profitable that doesn't mean the dealers are financially healthy and more over Fiat is profitable due to engine sale nothing else so if the fiat car sale is going to fall further the spares will become costlier due to less demand and also due to low sales the dealers will be moving out and it has already started.
    Again Fiat is not doing any charity here so no where they will support the dealers to share the burden of low sale and overhead cost of service centre and staffs involved in it.
    If FCA was so generous in supporting the dealers then they would have been in much better position now and may be having better number of sales and service centres.
    What FCA has done in arresting the sale slide till now? Any major campaign? nothing as somebody told it is full of stomach filled employes.
    Today I saw one mela near Bangalore university which was conducted by one of the dealers of MS, despite having great numbers of sales still they want to push the sales team on sat and Sunday's to get maximum number but other companies including fiat are relaxed and sitting on the fense and crib about Indian herd following.
    Every month MS dealers will conduct these kind of drive and capturing some more customers proactively.
    Why can't FCA dealer do it? are they satisfied with the current sales numbers or already decided that these kind of drives are no use.
    Last edited: Sep 13, 2015
    Revv, asimpleson, dadasaheb and 2 others like this.
  4. ghodlur

    ghodlur Esperto


    Your fears are right in their place. But I would not worry about them. If you remove the fiat engine powered cars, what does maruti have as its USP? Would there be any chart toppers? I don't feel so. As they say in cricket, form is temporary, class is permanent.

    Fiat is leagues ahead of Maruti when it comes to technology yet it is under rated. Fiat's main issue is that they are satisfied selling engines. The day Fiat decides that it has to bring in brands, other manufacturers would feel the shivers in their spines. One news about Abarth launch sent many a manufacturers back to their drawing boards. So relax, Fiat is no mood to quit as of now, it is taking slower strides but eventually it will come up with brands to the competition. Its like taking a small step backwards for a huge leap ahead. Like every other manufacturer Fiat too is plagued by mis management who are not able to gauge Indian customer pulse. Once they do it, there will be no looking back.

    I guess this is enough for fanboyism.
    Revv, asimpleson, nikhil0405 and 3 others like this.
  5. asimpleson

    asimpleson Esperto

    Linea 1.3
    Well said @ghodlur. @vista7155 while all that is true the company has lost a significant early entrant advantage. And extremely corrupt dealerships during UPS days, were also responsible for the negative publicity among people. Risk Averse people as we call them are not dumb people but people with different priorities. Sustainability of spares and services and costs ranks much higher than anything else in the mind of many. Couple that with features and price point and novelty factor. And even if Maruti customer is complaining somewhere some place every person gathers enough knowledge to pick his best that suits his /her pocket. Same for Hyundai.

    The task for current CEO is enormous. And if he is that serious as he says or looks right now, only time will tell. But on the plus side, Sergio Marchionne is not stepping aside till 2020. That is good news for Fiat group atleast. Once again, Jeep will have significant interest, but many people would still like to or afford to buy Fiats than the Jeeps for their city drives. Roads in metros are not even worthy of a Renegade, let alone the likes of Cherokee; meaning small cars matter and so do sedans.
    Last edited: Sep 15, 2015
  6. prabhjot

    prabhjot Esperto

    delhi ncr
    There was talk/rumours of a "broader, wide-ranging" strategic dialogue between tata motors and FCA in India, possibly even globally? I certainly hope there is some truth to that, since Tata Motors have committed themselves to fighting-back against the Jap-Korean duopoly/oligopoly in the mass-market (at 80% marketshare currently AND rising!) with all-new models, revamped dealerships, huge advertizing spends etc.

    FCA really needs to piggy-back-ride on Tata's efforts, again, given the evident sincerity and financial power behind them, when, that is, it comes to 'appliance-like' mass-market cars, and find a way to focus its own-brands purely on high-USP niches (Abarth-performance, Jeep-s, Fiat eurochic-style-and-sturdy/powerful-yet-affordable......).

    And on exports, of course, which are the ONLY way to make big money in and through India. That is the new 'iron law' of Indian auto manufacturing viability, for everyone other than MarutiS, Hyundai and (they're nowhere near there yet) Honda and Toyota possibly.

    Tata Motors are willing, perhaps foolishly, to commit 3000 crores to their passenger car division revival over the next 2-3 years. FCA's indirect profits do get boosted by that, BUT can get boosted even more IF they expand the collaboration beyond just the manufacturing-at-Ranjangaon and the technology supplies.
  7. Raj_pol

    Raj_pol Superiore

    Punto Evo 1.3
    @prabhjot I would absolutely disagree with the idea of a tie up with Fiat. The first time it did not work out and there is no point in Fiat diluting it's brand in India. If at all Fiat is unable to sell here, they should rename the current dealerships (the major one's) to Jeep and try selling that through those dealerships like a NEXA by Maruti. Fiat's brand value is at close to zero and associating with another failed brand known as a taxi brand is going to do them no good. They can continue selling engines though and make profits out of it.
  8. avi_loveindia

    avi_loveindia Amatore

    Grande Punto 1.2

    Fiat considering 500x and l for India
    --- Double Post Merged, Sep 17, 2015 ---
    I think its a worry matter
    Although Fiat may be churning good money by selling Engines but still if the car division fail,.... we can see fiat dropping out Punto or linea models ,,, just like they did it in Australian market,,,,Punto sold only 153 units and got Axed from Aussie market alongwith Panda

    Last edited: Sep 17, 2015
    Revv, Vidhyashankar Kannan and SVN like this.
  9. Vidhyashankar Kannan

    Vidhyashankar Kannan Regolare

    Avventura 1.3 90 HP
    Nice link about Australia. One would have thought that Fiat was doing reasonably well there. But they may not give up India that easy as India is one of the fewest nations where the car market is doing very brisk business. Even if they pull out the Punto or Linea, you would continue to get parts for a few years more. And then scrap your model and buy the latest Hyundai.

    Jokes apart, the market will go only towards safety all the more now with the high probability of global recession round the corner. And we Indians love to be ultra-safe, for good reason. Fiat's woes are going to deepen here.

    Interestingly, Hyundai is in 1st spot in Australia with their i30. They really know how to offer what the market wants.

    Last edited: Sep 17, 2015
    avi_loveindia likes this.
  10. rusticnomad

    rusticnomad Amatore

    Linea T-Jet
    500X @ ~18-24 lacs who will buy? Sell maybe 100 a year?

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