Discussion in 'Fiat India News' started by amogh, Feb 5, 2015.
Cant Agree more, Many UK reviews also claim FIAT is a small car specialist by quoting "Many car companies esp in europe try to build an ideal small car and could not get it right, FIAT had just hit that nail perfectly".
Panda 4X4 and Panda City are supposedly the best inexpensive family cars to run on daily basis and which is quite popular in UK along with the 500. I wish Panda is brought to India. I see them in Top gear shows as well where Hammond and Jeremy use it sparingly.
The Engine contract was supposedly extended till 2018 as per my knowlegde with MSIL. Not sure if it may be extended or not after that, as Suzuki small engine is already in R&D phase for implementation. Given their product line up now which are relying on the national engine it may extend the contract but still fingers crossed.
On what basis did you guage that ? Are you taking into account entire FCA performance with these brands or just the sales figures?
Because in India, targeting masses means decreasing the thickness of metal sheet & spending more on advertisements.
Also mefeels, Skoda, VW, Ford & Fiat should consider opening joint garages & Sub ASS at block levels to win over the service center concerns of these brands,where atleast routine servicings & spare part replacement kind of work is carried out.
I agree, most dealers and ass centres of most non-ms/hy/mahindra are struggling, esp Fiat, Skoda, VW, Nissan, Chevy and many of Ford and Renault too, not to forget many tata ones. i.e., the writing is on the wall: 2 or 3 or five of them must cooperate and combine at least aftersales support/centres, if not showrroms. That is one of the few ways left to cope with the HUMUNGUOUS advantage that MS and HY and Honda have, i.e., economies of scale for their dealers and the latter's hr quality.
It is now increasingly clear that tata after sales, now improving and being-revamped, may've been a better option for FIAT, rather than trying and struggling to financially underwrite independent workshops, however improved?
I hope FIAT is again exploring such cooperation. Unlikely and maybe impossible with Skoda and VW, but possible with Chevy and/or Tata?
Who knows, if something comes of the many rumours of a major tie-up globally between fca and tata-jlr and/or gm and/or suzuki, some such combined/pooled after sales, spares and perhaps even retail operations may yet happen?
Their financial statements, adjusted only for recent government investments i.e., bail-outs in Renault and Peugeot-Citroen which was necessary precisely because they were so loss making as to be approaching bankruptcy. VW, OPEL/GM and Ford are loss making, even in the last quarter, on a net rather than operating basis, in europe.
The FIAT brand's profitability in europe has been improving drastically over the last few quarter since the european recession ended and is very set to improve well into the decent-profit-margin territory very shortly (first 2 quarters of 2016) as the cost-competitive new models arrive (Tipo Aegea sedan, hatch and sw, a c-suv, a Punto-replacement, the 124 spider.)
If Linea Tjet is Least Selling Car in India, i dont think any other model can save Fiat in india.
Fiat has themselves to blame, they do not have any operational showroom within Mumbai and this too after recently launching abarth in India. Wish they could pick some clues from this forum.
Even the new launches from Ford and Maruti (SCross) have failed to sell, or rather within 2-3 months require huge and unprecedented discounts to sell. The Tata Zest and Bolt have not been well-sold either.
Maruti is having to heavily discount even their staples like the Alto, Celerio, WagonR. Hyundai has 2 models that are winners-take-all (so far), the i20 elite and the Creta, but has seen sales slump for most others and/or high-discounting for them to sustain numbers.
Added to this is the extreme neo-philia prevalent: i.e., only if it is a suitably alluring/charismatic all-new model from a trusted car brand, is the consumer interested in buying without big discounts.
i.e., if one adjusts for the precipitous decline in fuel prices AND the number of all-new nameplates/greater competition (greater internal competitio and cannibalization too, as Hyundai, Honda and Maruti too are experiencing): the Indian car market is still showing plenty of symptoms of a slowdown-one, i.e., the way it was 1,2, or 3 years ago.
EVEN Honda has slowed-down from all the growth last year, when it launched several new models. If you divide their total sales by the number of models they now offer in the mass market, and if you consider the huge huge investments they've made in india for localization, diesel engines etc, EVEN Honda, despite 3-4 all-new models in last year or two, is in the deep red, financially.
Meanwhile, FORD says it is looking to expand exports by a multiple of 3 over the next 5 years (engines, cars.) The obvious and necessary thing to do since their 1 billion$ investment in India in the new Gujarat plant will NOT be remunerated by not-too-discounted sales of the Figo and Aspire.
And of course, as is typical in slow-down car markets, the top brands do even better, in relative if not financial terms: sure enough HY+MS+H have 80% of the hatch+sedan segments sewn up, and will soon enjoy a high % in c2- and c1 segment CUV/SUV-s too (Creta, S Cross, new Ecosport competitors from maruti etc).
This is HARDLY the sort of marketplace where the FIAT brand with its all-new Punto, Grand Sienna, Avventura etc stands ANY chance at all, no matter what they do with marketing etc. Other car firms esp maruti will also be launching a new model and dealer+ASS investment tsunami in 2017-2018. Maruti says it will be spending 10000crores+ on new model r&d, new and revamped dealers, etc over the next 5 years, VW, Chevy, Toyota and Renault-Nissan too will be launching several new models at exactly the time FIAT will (2017-2018). There's no way FIAT could possibly get a word into consumers' ears long enough and persuasive enough, then, to yield even fractionally-decent, adequate-for-dealer-viability sales, even in 2017/18?!
Am afraid FCA should be thinking, if at all, 80-90%, of exports for the FIAT brand's all-new models: they sure will not be selling better-enough in the Indian marketplace.
And if even that is redundant/unprofitable, FCA really must think then hard about going only JEEP all-the-way, including at lower price points like say the SCross at 12/13 lakhs? Plus exports, of course.
Too bad. It's a good thing they're one of the few profitable car firms in India. So far. If they want to keep it that way, they have no choice but to ask this basic question in india: should FIAT as a brand even continue here? And if so/at all, should it not do so only as a small-side-show to the main ones: exports, and JEEP?
December 2015 sales number just out.
Fiat India sold 792 cars in all.
Detailed Model-wise report will be shared later.
courtesy: Management Punditz
So Fiat managed to sell a few more units than November 2015 that too with lower discounts.
Good thing. Since news coming that old grande punto relaunching, my assumption if they launch it with new gear box, evo interiors, projector lamps, a bit more chrome (not like evo, but a chrome line in rear) and refined engine, then it still has life in India.
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