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FIAT India Sales

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

  1. amitshedha

    amitshedha Amatore

    Messages:
    79
    Location:
    Pune
    There are new jeep & FCA+jeep dealerships opening, but at the same time existing dealerships are running with low sales. In next 6-9 months things should get clearer.
     
    Last edited: Jan 24, 2017
    prabhjot and Tamil like this.
  2. asimpleson

    asimpleson Esperto

    Messages:
    3,206
    Heptanesia
    Linea 1.3
    Yes please take a practical view of situation. No words can help later. Both the alternate mentioned vehicles are good and vehicle ownership must remain a hassle free ownership for sure.

    If however you can go the extra miles to buy and service, we will be glad to help later. But no point blaming Fiat then. Things could improve suddenly but no one guarantees. New products are in pipeline.
     
    Tamil and prabhjot like this.
  3. vista7155

    vista7155 Regolare

    Messages:
    394
    Location:
    bangalore
    @Tamil
    That's what uncertainty is(closing the dealership overnight) they have closed in so many places without bothering of existing customers and asking them to travel 100's of kms for pathetic service,rip off(some might be good SC).
    The same thing happened to me,there was a sales&SC near my home which got closed within 1 yr and the reason is zero sales,less cars for service and always required to travel at-least 25+ kms one side for service in the pathetic Bangalore traffic.
    Other 2 SC's are totally out of reach as of now.
    It was in very good location i.e, next to TATA,VW,Hyundai and MB so maintaining the showroom which has less sales is uphill task.
    I don't recommend the tin cans to anybody but personally prefer to go for TATA/Mahindra which are decent to maintain and have good after sales but Scross 1.6 is completely different to tin cans and is good alternative to FIAT as it has very good service support,reliability and maintenance will be always less compared to skoda/VW
     
    Raj_pol and Tamil like this.
  4. Bala

    Bala Esperto

    Messages:
    1,199
    Location:
    Villupuram
    Was parting ways with TATA a mistake,even though tass service was nothing to write about,atleast the availability would have been confidence inspiring.
    None the less,all those who bought fiat cars would have forseen this situation of service and sales centres closing down,
     
    gpunto75 likes this.
  5. asimpleson

    asimpleson Esperto

    Messages:
    3,206
    Heptanesia
    Linea 1.3
    There is this issue of sales and sufficient orders to vendors who supply spares. Even if logistic tools and systems are in place, it is a combination of FASS incompetence (private players) to stock spares and also due to demographic low usage of FIAT cars plus dumping rising costs of spares on customers sometimes prohibitive only magnifying their woes.

    There is no way out of this except sales and hit products to keep the FASS busy. Maruti just keeps doing it. Improvising and obviously they can afford to looking at the loyalty they have. Even better than Toyota in India in that area.

    Even tying up with Tata will be a headache to Tata management which also has a way more agile management running the show.
     
    prabhjot likes this.
  6. prabhjot

    prabhjot Esperto

    Messages:
    2,902
    Location:
    delhi ncr
    imo the only way around this is exactly what they're doing:

    (a) expand service centre only, esp third party workshop coverage while also ensuring open-market spares supply

    (b) anchoring dealers financially in JEEP, not in an unviable and too-risky FIAT brand

    (c) with a at later stage (i.e., 2019+) possible but perhaps not-financially-necessary launch of all-new Fiats.

    A large combined with other brands retail and service strategy is THE ultimate solution (e.g., vw and fca or fca and gm and/or tata etc) BUT that has many other complications that make it unlikely for now. EVEN if it is not just Fiat that has this issue: so do nissan/datsun, vw, skoda, chevy, maybe even Ford and possibly in the future Tata too (if their current re-invention fails to get enough volumes traction) in some parts of the country.
     
  7. pranesh kumar

    pranesh kumar Amatore

    Messages:
    58
    patna
    Avventura 1.3 90 HP
    i think fiat will not close its car business in india. because at the moment every other company wants to sell it's car in india. india is a big big opportunity for them.
    so, why will fiat shut down its established business here? i think its out of question.

    i thik fiat is happy with the sales figure of cars and they want to concentrate on their engine business.
    if you will see their sales figure in other countries then u will think that the company must shut down in entire world because in every country other than italy they have market share of 5-10% only. but fiat is happy with it.
    may be this is what they want. otherwise the level of expertise the possess they can bring new hot cars anytime which will rule the roads and will find many buyers.

    so, fiat seems to be happy with whatever they are doing in india, only we customers are worried.
    but fiat must do something to make us feel safe.
     
    prabhjot and Raaz like this.
  8. prabhjot

    prabhjot Esperto

    Messages:
    2,902
    Location:
    delhi ncr
    @pransh kumar

    Two errors in what you're thinking.

    (a) India is NOT at all a 'must', compellingly attractive market for most autofirms: not for the euro or the american firms, who've all (except FCA) been and are-currently getting badly burnt here. The problem with us in India these days is that we are perfectly deluded about our 'nationalist' rise and grandeur. Most industrial etc mnc's and most of our 'own' are RETRENCHING investments and jobs, many are sitting on massive losses/expensive, often unpaid-debts. India's is not a 'big opportunity' anymore, it's long ago lost its premium positioning as a real-economy (rather than merely financial speculative based on cheap money printing abroad) investment destination relative to say mexico, indonesia, china, philipines etc. The boom, ra-ra years are OVER in India (ended around 2012), just like they have been everywhere else in the world, except over the past few years china and the usa.

    (b) Toyota is moving pretty slowly here: i.e., india's not any priority. besides, they've tied up with Daihatsu and Suzuki.

    (c) the India car market has NOT grown as projected, overall, at all. There's been a flat-to-slowdown in overall sales in India since 2013, ended only in early-mid 2016, but again in slowdown mode since notebandi, raising of taxes, etc. Luxury marque sales are plummetting (25-40%), again: NOT as per projections. The Indian market has cost too many firms (not fca!) billions in accumulated losses. Several would've shut shop in India a while ago IF it weren't for some, increasing exports.

    (d) only a few firms have the sort of cars and the sort of resale+sales+service ultra-high 'reputation' ability to cope in India. i.e., firms like Ford, Fiat, Chevy, VW, Skoda just cannot compete with MarutiS, HY and Mahindra+(now it seems again) Tata. Only a few new launches from the same set of 3-4 car makers are hogging all of the 'growth', and for the rest there is a discounting/low-margin bloodbath in auto sales going on for most firms for the last 2+years (only worse nowadays for many fiat, skoda, vw, ford, nissan, bmw, audi dealers.)

    (e) FCA will never leave India, though they may yet shut the Fiat brand down here: not worth the headache (guaranteed sales failure and unnecessary losses: like Honda, chevy, vw, skoda and nissan, plus esp Ford who've seen a new huge-investment factory in Gujrat (where else?) bomb with its 'third world special' models, the figo and aspire.)

    They're going full-in with higher-margin JEEP and with, more importantly, exports, to add to their thriving engines, transmisisons, amt, lighting etc business here, supplying Tata and Maruti and other firms too.

    FCA will assuredly have one or more service centres per meaningfully-large city, for many years yet: whether all-new Jeep ones, old-Fiat-ones-converted-to-combined-FCA ones or smaller third party official service workshops. With spares easily-enough available too.

    FCA sales, marketshare and profitability is booming in all regions, and their high-growth brands and markets DEFINITELY do NOT include India: China, Europe, Usa-Mexico, Japan, a regrowing Brazil, a growing Argentina+Chile etc. PLUS: the focus on a global+usa basis is on the premium/sports/luxe brands (Jeep, Alfa, Maserati, Chrysler, Ram, Dodge, Abarth.) Not FIAT (outside of LatAm and a few segments in Europe)

    Chevy and Ford have withdrawn from Indonesia and Japan recently, Russia a few years ago, and so on. Chevy is already shutting one of its plants down (Gujarat again!), if only they're allowed to. Ford investors see its failed India investments in a very dim light, i assure you, and its global profits are dipping hard now.

    FCA has so far made money here, unlike all-except-3 companies. The new Jeep-first strategy plus exports thereof is the right strategy, the other side of which must surely be withdrawing FIAT from India, before they're forced by the market to offer some crappy-third-world-car-with-touchscreen model here....that still will be ignored by nearly-all.

    Personally i'd rather they shut down the FIAT brand rather than do that. Make money via Jeep and via-Tata-Maruti-and-others (engines, amt, lighting, Magneti Marelli etc) because to 'make it' for themselves or their dealers and service centres via Fiat is near-impossible imo.
     
  9. pranesh kumar

    pranesh kumar Amatore

    Messages:
    58
    patna
    Avventura 1.3 90 HP
    @prabhjot
    your points are fine. but i still think india is a great opportunity for fiat and others.

    india is an emerging market. its buyers are also emerging. lower class is moving towards middle and middle class towards upper.

    now a days we see more luxury cars than we used to see a decade ago, and its still increasing, look at fiat itself, trying to establish jeep here.
    so buyers will get matured and will eventually understand difference between maruti and fiat. provided fiat also understand the demand a little bit.
     
  10. prabhjot

    prabhjot Esperto

    Messages:
    2,902
    Location:
    delhi ncr
    Well, maybe, but ther's a net-net aggregate investment, jobs slowdown in India: and that is increasing. Remember: it takes hundreds of crores to launch a new model, let alone market it and sell+service it. The numbers involved require large and at-least-somewhat predictable growth: firms had already invested hugely over the past 2 decades, esp in the late 2000's and early 2010's. They're all in slowdown, at best wait-and-watch mode now, such is their bewilderment at their utter failure to crack the uniquely difficult Indian market (and this includes Mercedes, etc and not just chevy, vw/skoda, Fiat,etc.)

    The added problem (the whole world is in an investment slowdown: too much cut-throat over capapcity already lying around) in the Indian car market is that: it is OLIGOPOLISTIC, unlike any other in the world. 1 firm controls 50+% of the market and rising.....with world-best profit margins of more than 14-15%! Throw in HY and Mahindra and maybe (let's see) Tata, and i believe the Indian car market will have achieved its new, near-ermanent STRUCTURE.

    What we're seeing is a SHAKE-OUT in the industry, the dealer community etc: with only a few firms in command.

    problem is: even the niche segments sales (i.e., mercedes, audi, volvo, bmw etc) are in a pretty severe stagnation and nowadays major-downturn mode overall-at-India-level.
     

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