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

Will Tata Motors and Fiat Ride Out the Jinx?

Discussion in 'Fiat India News' started by Ravi, Dec 2, 2010.

  1. clash81

    clash81 Regolare

    Messages:
    398
    Bangalore
    what makes fiat stay in this deal? The engine sales? On the technology front, the JV seems to be having stricter norms favoring TaTa, or at least that is what i understand after that interview piece posted there.
  2. Ravi

    Ravi Staff Member Janitor

    Messages:
    6,001
    Bangalore
    Grande Punto 1.3
    Free reach to huge dealership network, in so small time. And if sales picks-up, it can be extended faster.
    Mind it with 2K sales, it impossible to maintain 175 dealership/service center. This is probably the 2nd most important cost factor, after factory.
  3. gauravp

    gauravp Amatore

    Messages:
    86
    Pune
    i don't intend to offend but IMO what is use of 175 dealers if they sell only 2k cars per month..2k cars can be managed with independent FIAT dealers in major cities plus this will also boost the customers confidence in FIAT again.
  4. kaps

    kaps Superiore

    Messages:
    673
    Arakkonam
    Fiat is in a catch22 situation. When Indian auto market is booming, they are unable to bring in cutting edge technology to India. If they do not bring in technology, sales stay stagnant. If sales stay stagnant, people loose interest and competition trounces you. The boutique concept IMHO is a very good start for Fiat to start branching out on their own. This could be the best way to build brand image. By end 2012, Fiat should start having their independent showrooms and continue piggyback on Tata till they achieve self dependence in service centers. Only downside of this is newer technology not coming to India before somebody else brings it. IMHO, by 2015 Fiat India Auto should be an independent entity.
  5. clash81

    clash81 Regolare

    Messages:
    398
    Bangalore
    This JV is a very cruel one here. There should have been some clauses for exclusivity over the technology that is being brought in here. They can do much better than this when coming to selling their existing cars. They simply are not getting the act right.
  6. jumu

    jumu Superiore

    Messages:
    969
    Chennai
    IMO, the only way this JV can be balanced and FIAT be encouraged to bring in newer technology in the full 50:50 basis is that TATA will get power trains at a favorable price only to the equivalent of the number of cars sold by both parties. If TATA sells more, of manza and Vista equipped with Fiat power trains, then TATA should be made to pay more for the engines to that extent. eg If FIAT sells 2100 cars and TATA sells 4600 cars of Vista / Manza, then TATA should be eligible for normal rate of power trains only for 2100 cars, for the remaining 2500 additional powertrain, TATA should pay more. By this way TATA will take the marketing of FIAT more seriously. If they havent done it for the 1.3mjd then they should at least do it for the 1.6 mjd and the multiair to come later.When every thing is shared 50:50 then why not the marketing too.


    Abdul
  7. Prateek

    Prateek

    Messages:
    10
    Delhi
    Just wondering aloud 'Can / Can not Fiat do the Indian Journey on its own?'
  8. amit

    amit Superiore

    Messages:
    767
    Navi Mumbai
    No they can't. At least not yet. They have only 2 cars to offer to our market and thanks to their well earned reputation over the last decade no businessman in his right senses will invest a few crores to set up a Fiat dealership. What are they offering in the future? A small car. Looks good on paper but Fiat is no Maruti or Hyundai or even Honda to ensure wider market acceptance for this small car.

    Tata & Fiat are 50:50 JV partners. This kind of deal is not possible practically. Also, don't forget Tata has invested Rs.2,000 crores in the Ranjangaon plant. Like it or not, Tata own as much of Fiat's India business as Fiat does.

    The way out is to set up showrooms the way VW-Audi have their showrooms in North America. That, I believe, is the only way out.

    Mr.Tata has said that Fiat needs to get more models into India but which model can they bring? Fiat are pre-dominantly small car maker in Europe with no successful sedan to boast of. The best they can do is get the Doblo or Multipla here to compete with Xylo's and Innvoa's. The Bravo, even if manufactured here has no market. One way out is for Fiat to make a Bravo sedan specially for BRIC market's and launch it here at about 13-15 lakhs. The best car that Fiat can bring into India is the Freemont. Maybe once Fiat & Chrysler roots deepen, we may see Fiat managing to bring some Chrysler sedans badged as Fiat's here. Unfortunately that seems quite far away into the future.

    A Fiat badged Chrysler 300C would be a nice car to buy.
    Last edited: Jun 20, 2011
  9. kedarbendre

    kedarbendre Esperto

    Messages:
    4,215
    MH 12

    Totally agree with amit here. They should launch Freemont instead of launching Bravo.
  10. gagi_vid

    gagi_vid

    Messages:
    41
    Belgaum
    Tata feels JV with Fiat is stalling; needs another gear news

    16 June 2011
    http://www.domain-b.com/industry/Automobiles/general/20110616_ratan_tata.html

    Tata Motors chairman Ratan Tata is clearly not satisfied with the way his company's partnership with Italian carmaker Fiat is heading, saying on Tuesday that the joint venture has not been performing as per expectations.

    ''I have to admit that so far the venture with Fiat has not been as active as we had thought,'' Tata said in an interview to market research firm JD Power Associates. He said the partnership with needs to be critically examined for optimising potential. Among other things, the Italian company needs to bring in more new models to India, the Tata group head said.

    Fiat India currently sells only three models in the country – the hatchbacks Fiat Palio and Punto and the sedan Fiat Linea. Although all three models have got decent reviews on price, features and performance, the company has been registering moderate sales.

    Tata said, ''I think that Fiat has to launch more models into the market to keep dealers interested. It also has to look at its cost structure in terms of parts and components. So the joint venture needs to be looked at quite critically and until that happens, it's not going to be optimised.

    also read this..
    http://www.rediff.com/business/slid...a-is-worried-about-fiat-in-india/20110617.htm


    Mods Note - Threads Merged.
    Please do search before creating new thread.
    Last edited by a moderator: Jun 20, 2011

Share This Page