1. Introducing the smashing new Team FIAT T-Shirt !! To order yours click here : Team FIAT T-Shirt

Fiat India small car to take on Alto

Discussion in 'Fiat India News' started by amogh, Jun 30, 2010.

  1. amogh

    amogh Staff Member Janitor

    Messages:
    1,377
    Pune
    Grande Punto 1.3
    NEW DELHI: Fiat India is gearing up to make a splash of its own in the country’s burgeoning small car market by launching an India-specific car in 2012. The company’s much-talked about new small car will not bear any resemblance to the company’s Uno model. The car will be launched in 2012 and will be an entry-level model, priced much below the company’s premium hatchback, Punto.

    “It will be an all-new car, nothing to do with any of our other models and will be priced aggressively. It will compete with the Alto and will have a one-litre engine,” Rajeev Kapoor, MD, Fiat India told ET. “The Uno brand has become rather generic in nature. We are still figuring out a new brand name for the car,” he added.

    “The new car will be an India-specific one, made in India, made for India, keeping in mind the country’s unique terrain and temperatures. Our R&D team is working day in and day out to develop the car that meets consumers’ needs in the best manner,” he added.

    With this car, Fiat hopes to get its product across to a much larger set of consumers and to effectively increase its market share from the current 1.5%. “The small car market in India is blazing and there is intense competition. The entry level car space excites us,” said Kapoor. The company, which currently has the Palio, targets to sell a total of 40,000 cars in India this year.

    Market speculation was rife that Fiat would re-launch its Uno model sometime later this year. The Uno had a chequered innings in India with dwindling sales forcing Fiat to shelve the car’s production.

    Fierce competition and surging demand for cars in India has led carmakers to Indianise their offerings, even introducing wholly Indian cars. Two years ago, Hyundai did it with the i10, and then Ford Motor Company followed by introducing its car for India -the Figo earlier this year and now Fiat will follow.

    Auto industry experts reckon that while the launch would indeed help Fiat target more consumers, the company would have to work on spreading the network of their service outlets far and wide. Says Rahul Verma, director and head, quantitative research, Synovate India; “Fiat would have to ensure the widespread availability of cheap spares. Although the company has sorted out the distribution problem with the tie up with Tata Motors but will have to spread its authorized workshops to aid efficient after sales service, a critical aspect in India.”

    Agrees Abdul Majid, PwC: “The Indian small car market demands companies to better their distribution and after sales service network. Also, the company will have to localize the product better than its competition. This aspect will be key.”

    Source : http://economictimes.indiatimes.com...l-car-to-take-on-Alto/articleshow/6108255.cms
  2. Ravi

    Ravi Staff Member Janitor

    Messages:
    6,001
    Bangalore
    Grande Punto 1.3
    Yes this will the car to change the fortunes of Fiat in India.
  3. amogh

    amogh Staff Member Janitor

    Messages:
    1,377
    Pune
    Grande Punto 1.3
    Message to Fiat : If you are targeting volume sellers : Come up with INDEPENDENT service centers !!

    40,000 cars a year translates to : 3.5k cars per month. I do not think the current TASC setups can handle all the Tata + Fiat load.
  4. amit

    amit Superiore

    Messages:
    767
    Navi Mumbai
    Sounds interesting. Lets see how well the execute this project. An Alto sized car is a totally different ball game then premium hatches and sedans.

    Ultimately, the question is will people bite a Alto sized hatch from Fiat considering Fiat's image and people's requirement of low purchase and servicing costs alongwith cheap spares and very good fuel efficiency. Well, for the image part, they have another 2 years to improve it but the biggest stumbling block for this car will still be Fiat's image. In that segment, it's very difficult to make your mark but once you do you will have people who will not look anywhere else. Ask Maruti & Hyundai.
  5. anand3636

    anand3636 Amatore

    Messages:
    51
    Cochin (KL - 44)
    Even in the past no one, even hardcire fiat critics never said Fiat cars are not good. The problem was bad sevicing and lack of spares and hardly any timely attention to customer complaints.
    Modern Fiat cars are known for fuel efficiency and low cost of maintainance. Now fiat has got two years to setup and expand the number of dealerships and service points. Things have changed since the Uno and Palio days and much more needs to done in that area.
  6. royj

    royj Esperto

    Messages:
    1,306
    Trivandrum
    Good to hear they are serious about this market.
  7. milind5656

    milind5656 Novizio

    Messages:
    45
    Pune

    +1 for this..

    Am damn sure Fiats sales will rise much higher if this happens anytime..!!
  8. I really don't get it. Why is everyone so much critical of the ASS of Fiat. Why is the fact that it has improved drastically as compared to the Uno era being publicized all over the market. I think the present batch of owner will agree to this.
    I service my GP at Pandit Auto, Pune. And never have i faced any major issue with Ass. Also, there is a call from a call center after each visit. My family owns maruti/Hyundai/ Mahindra/Tata vehicles. Heck, even TATA vehicle don get the same attention as the FIAT care. And adding on to that, people are getting calls from FIAT Italy for feedback!!!!! :dancing

    The problem is WHY ISNT FIAT PUTTING THIS IN THE MEDIA??? MARKETING????

    Hyundai refreshed i20 and gave it indicators on the side mirrors and publicized as segment first and what not.... Have a look at VW polo ads.... FIAT... Please... Market your products better....

    Oops.... I guess i went off topic.. :)

    Regarding the FIAT small car... I really wish they make a car whose base variant costs less than 3 lakhs. Then people will start thinking of the vfm and other things and over look ASS.
  9. amogh

    amogh Staff Member Janitor

    Messages:
    1,377
    Pune
    Grande Punto 1.3
    @aadicool : we are not being critical of the ASS. we are skeptical about their ability (in terms of resources) to handle volumes
  10. Ravi

    Ravi Staff Member Janitor

    Messages:
    6,001
    Bangalore
    Grande Punto 1.3
    Amogh, they are increasing their capacity.
    Lasttime, when Fiat did the free check-up camp, there were 4 places you could go in Bangalore. This time it is 7.
    But I agree with targetting volume first they need to increase their capacity and show to people that they can do this.

Share This Page