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Fiat to bring multi-brand FCA dealerships in India

Discussion in 'Fiat India News' started by MakeTheMove, Aug 10, 2016.

  1. prabhjot

    prabhjot Esperto

    Messages:
    2,441
    delhi ncr
    Maserati has 3 as of now: bombay, bangalore and delhi, i think, maybe? All three new of course. No chance of combining with the Jeep-Fiat combined fca ones? Too exclusive. However, the prospect of the new Alfa Romeos getting bundled in with some of the biggest city dealerships, alongside JEEP+-FIAT is an intriguing one. IF they launch Alfa here, in a few years' time, to go up against the German trio: Alfa is increasingly bundled with Jeep, dealership-wise, and vice versa, in europe, increasingly in latam, japan, and very soon (2017) in China too. Although in some places it is bundled with maserati. In the usa Alfa is going to be bundled in somecases with FIAT dealers/'studios'.THAT likely prospect in a few years' time depends largely imo on India agreeing to terms with the EU on the 'free' trade agreement currently hanging fire?

    The multi-own-brand approach to dealerships is one that other firms follow too: eg Jaguar-Land Rover, and the Piaggio Motoplex dealers who retail everything from Vespas to Moto Guzzis.

    @Krunal Bhatt
    Krunal Bhatt likes this.
  2. Krunal Bhatt

    Krunal Bhatt Amatore

    Messages:
    65
    Ahmedabad
    Ahmedabad
    Punto Evo 1.3
    Thanks @prabhjot . (Sorry for very late reply.)
    Multi brand approach is really a good option for struggling brands. That way customers will have more to see and choose from one showroom. I hope that works well for FCA.
    Ford (with Mustang) and Nissan (with Datsun) are already there. And soon I am expecting Hyundai (Kia, though they are successful already, but, still they can use other brand to attract more customers) and GM (They have long list to choose from) to go same way in India to increase their market share and to increase the model range.

    On the other hand we have Maruti, which requires separate showrooms to maintain their product range.
    (Not a big fan of Maruti but we must respect and accept that.)
    prabhjot and PradeepM like this.
  3. prabhjot

    prabhjot Esperto

    Messages:
    2,441
    delhi ncr
    @Krunal Bhatt

    Maruti is becoming a real estate company too: they're buying 5000 crores worth of land+construction costs for their dealers (to be implemented within 3/4 years), and then they will convert most dealers to a 'franchise operators' NOT owners of buildings and service infrastructure.

    i.e., they're using what they already have, the world's highest level of market dominance/concentration, sheer scale-economies to derisk their dealers, and to even gobble up a large lucrative chunk of the latter's part of the 'value chain': via land and building rents!

    That is impossible for capital-conservative/rational firms like FCA, in fact like any other firm! Maruti Suzuki is by several measures the most market-cap strong and thriving auto firm, with the highest profit margins in the world, barring only (though even here not on all measures) perhaps Toyota.

    Perhaps good old Mr Osamu Suzuki saahab would do us the favour of buying-out FCA (globally): all Fiat/fca fans and owners' problems in india would disappear instantaneously! He can easily afford to! Although it is increasingly unlikely that the 'big merger' deal that Marchionne wants to get done before his retirement in 2019 is with Suzuki (the ideal candidate, as widely speculated and presumed), precisely because of the GARGANTUAN financial potency of Maruti Suzuki India. The financial/accounting terms would be just-too-skewed in Mr. Suzuki's favour. ;-)
    cassini and PradeepM like this.
  4. PradeepM

    PradeepM Staff Member Janitor

    Messages:
    693
    Hyderabad
    Linea 1.3
    Yieeekkk :meh:, not a bad thought as long as they don't get the DNA virtues to the cars :smuggrin:.

    Cheers,
    Pradeep.
    carl_jhonson and prabhjot like this.
  5. Tony

    Tony Esperto

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    2,048
    Kalamboli, Navi Mumbai
    Kuwait
    Grande Punto 1.2
    Mumbaikars are struggling for a Showroom of Fiat since years
    Hope so there Wil b soon
    PradeepM likes this.
  6. prabhjot

    prabhjot Esperto

    Messages:
    2,441
    delhi ncr
    Kevin Flynn said there'll be a Jeep one by October/November in Mumbai. It will be a combined FCA one, as he said to ET a few days ago, though they might initially for brand-building purposes keep it as Jeep only, for a while.

    @Tony
  7. prabhjot

    prabhjot Esperto

    Messages:
    2,441
    delhi ncr
  8. Sumit

    Sumit Superiore

    Messages:
    607
    Munger
    Good times ahead for Fiat

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