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FIAT India Sales

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

  1. prabhjot

    prabhjot Esperto

    Messages:
    2,441
    delhi ncr
    Market concentration increases further, overall as well as in-each-segment or price-band. Top 3/4 firms have a lock on 75% or so of the market. A lock.

    The idea that lots of great marketing makes a success of a brand or model, sales wise, has again been belied by several examples of firms with ALREADY weak or indifferent brand-'equity' running large, expensive ad campaigns, supplemented by massive and repeated, well-advertized easy-finance and discount schemes (Ford, Nissan and Skoda recently) to NO avail.

    Many slow-selling brands have massive discounts that've been running for the last many months: that makes little to no difference. The median consumer in india does NOT respond to price signals, IF the brand and/or model is already 'at a discount' in terms of sales-popularity and/or after-sales assurance perceptions (however false or exagerrated.) Evidence that the herding-effects of different types are EXTREME in the indian market. In any case, even the top dominant brands are running big-discount schemes on many models (eg., the ones being proferred to ola+uber etc taxi buyers), in fact their ability to squelch ANY price-warrior challenge to their 'hold' on the market is epic, since their scale economies and profit margins are already huge.

    Newly-introduced models are either outright hits (Maruti and Hyundai, mainly) or outright and never-to-recover flops: this tendency is getting exacerbated. What this means is that any firm looking to launch an all-new model(s) is running very great risks, greater than in any other large car market in the world. No car market in the world sees 2-4 firms dominate in this manner, in segment after after segment, to this extreme degree, with their new as well as old models.

    It has been reported that GM and Ford too (which have recently shown a willingness to quit entire markets, as they've done recently in japan, indonesia, russia etc) have their india-operations and investments under severe review. GM, btw, has accumulated losses in India of over 1 billion$, FORD's new Gujarat plant, based on gratuitously large subsidies from that state government/CM, has only further added to its accumulated losses of thousands of crores (Figo+Aspire having bombed completely, and very strangely.)

    Even Honda, which invested in a new diesel engine, a new plant and an all-new platform (largely with india in mind), going on a new-model offensive over the last 2-4 years has found that, EVEN it, with its percieved high brand-equity, and despite at-least a few thousands of cars in sales volume, is not immune to the indian car market's uniquely potent ability to inflict huge financial losses on car companies. Toyota too has put all mass-market investments on hold in India:no new Etios+Liva+small crossover etc from them: they too are reviewing India as a mass-, high volume+high investment market.

    SO. For the non-Maruti+Hyundai firms: Ads tend strongly not to work. Neither do discounts. Nor do 'new' model offerings per se, nor potent engines, ride-handling, safety, build quality etc. What works are (a) first-mover models (e.g., Kwid, Ecosport) and/or (b) 'reputable' aftersales and resale value. That's it.

    FCA, then, is doing the right thing by going all-in with the JEEP brand, already a known, familiar common-noun one, and with some claim in India to being, as a brand, a first-mover ((a), above) and with a clean slate on (b) above.

    IF the upcoming for Sept 1st launch of the Jeep brand and dealerships goes well, as do the localized c-suv sales in mid- or end- 2017, only THEN would fca even think of high-riskily investing in new models for the FIAT brand (not before end-2018/19)? Especially since there will apparently be a b-suv from Jeep too eventually (2018?) after the local production and esp exports of the c-suv.

    The only way to square the circle, then, is to adopt an export-centric approach, EVEN for future India-made Fiats, harder though that is compared to JEEP. i.e., models maybe like the rhd 500X and 500L (emerging-markets, lower cost chassis and suspension etc, shared with the JEEP emerging markets-special JEEP, a small, sub-Renegade model apparently planned for exports outof and esp sales-in India after the c-suv).

    Rather than the poorly-exportable 'new Punto', 'new Linea/grand Sienna/Tipo', or 'new Avventura'? Unless they decide to use India/Ranjangaon to break into new, even lhd markets, for the FIAT brand like say Iran, Egypt, Turkey, North African countries....?
    Murphy_Fiat and sathishgv like this.
  2. Ravi_M

    Ravi_M Regolare

    Messages:
    323
    Indore
    Indore
    Linea 1.3
    See the better side - It has been selling around 500-600 cars for past many months. In fact this figure is better than past 2-3 months, if I recall correct.
    prabhjot likes this.
  3. dr nil

    dr nil Timido

    Messages:
    5
    Kolhapur
    Punto Evo 1.3 90 HP
    I think Fiat should launch cars which appeal Indian mindset. Today we see Maruti and Hyundai have succeeded because of their design, marketing and affordable price quotient.Indian public is not bothered about quality of material even car companies sell them tins of low quality, people only need design at affordable prices. Fiat should take initiative to make changes in their marketing strategies.
  4. Krunal Bhatt

    Krunal Bhatt Amatore

    Messages:
    65
    Ahmedabad
    Ahmedabad
    Punto Evo 1.3
    Yes, Our beloved FIAT is consistent in sales figure as well, along with build quality and design.
    BTW anyone in TFI took test drive of New Punto Powertech/Linea 125s? If so, please share the thoughts.
    Also, if possible I would request moderators @amogh and @nkrishnap to have a detailed review of those cars.
    prabhjot and PradeepM like this.
  5. PradeepM

    PradeepM Staff Member Janitor

    Messages:
    693
    Hyderabad
    Linea 1.3
    @ Dr nil, I agree with you on the design / appealing aspects from Hyundai, however not on the affordable pricing part as the recent launches from Hyundai are definitely overpriced (trying to squeeze for brand name). In regards to Maruthi I will hold my reservations in related to quality and other aspects expect for the so called affordable pricing after the extensive cost cutting :happy:.

    Netherless I agree, their strategy and portfolio to cater to a wide range of customers certainly keeps the overall sales charts ringing.
  6. SwifttoPunto

    SwifttoPunto Novizio

    Messages:
    47
    Bangalore
    Punto Evo 1.3 90 HP
    The attached strategy file still holds good and I am sure Fiat is still following this except that there are few delays. So from Fiat side we are going to get new Punto and grand Siena? may be in 2018 instead of 2017 as there already a delay of one year in their executions. I dont think they will change strategy so fast from 2014. Also I have attached another statement from their 2015 annual report which talks about main challenge in India or that may be an excuse.


    upload_2016-8-9_17-47-46.png


    upload_2016-8-9_17-53-28.png
  7. prabhjot

    prabhjot Esperto

    Messages:
    2,441
    delhi ncr
    @SwifttoPunto

    Thank you!

    Yup, so far they're sticking to the plan, apart from the big delay in JEEP and the slight-delay in Abarth etc.

    I feel they'll see how the JEEP localized c-suv etc goes in india, and will likely add another JEEP model for local manufacture below and cheaper than it (Renegade? a sub-renegade model similar to it in appearance?)

    i.e., imo the FIAT part of the plan may indeed not, and not need-to be, as per the plan. imo the hindrance is or will surely be the weak exportability of these Fiats (new Punto, new Grand Sienna etc), relative to the ample ones for the Jeep c-suv and the Renegade-like, smaller model.

    On the other hand: if JEEP makes things that much better for FCA and, vitally, for Fiat+Jeep dealers, financially and in-terms of capacity-utilization, then yeah FCA may end up being in a position to risk a mostly-India (rather than export) strategy for the next-gen FIAT models of this plan, expensive though that would be to attempt: a heavy bet, imo, with dodgy odds. My own private wish as a sure-buyer would be, instead or in-addition, for the 500X, though that's somewhat unlikely?!
    Murphy_Fiat likes this.
  8. Krunal Bhatt

    Krunal Bhatt Amatore

    Messages:
    65
    Ahmedabad
    Ahmedabad
    Punto Evo 1.3
    After seeing Indian consumer's response of S-Cross 1.6, FCA may further delay the launch of 500X/Renegade in India. Because, price wise both these cars will be in range of S-Cross 1.6 only (+/- 2 lac)
  9. PradeepM

    PradeepM Staff Member Janitor

    Messages:
    693
    Hyderabad
    Linea 1.3
    Mate,
    I personally feel S Cross did not take off because of the drooping external design. Everyone loved the 1.6 MJD for all the known reasons.
    Many FIAT owners described the S Cross as a FIAT in disguise (in terms of character) with a S badge.
    Also the brand image where people cannot accept (not yet) a Maruthi for 15 L .
    Well the same capacity 1.6L engine plugged in a car with better exterior and interior looks but not even half the handling capabilities still sells easily for 16L, and that is brand perception.

    Cheers,
    Pradeep.
  10. Krunal Bhatt

    Krunal Bhatt Amatore

    Messages:
    65
    Ahmedabad
    Ahmedabad
    Punto Evo 1.3
    @PradeepM
    I agree. I was just comparing based on price and engine.
    BUT, don't we see Ritz and i10 in large number?(both are among worst looking models, IMO)
    Last edited by a moderator: Aug 11, 2016
    PradeepM likes this.

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