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Will Tata Motors and Fiat Ride Out the Jinx?

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

  1. Sumit

    Sumit Superiore

    New generation Palio is a better option. but how will Fiat react is hard to tell or will they react at all ! if they cant sell Puntos and Lineas then what else can they sell. it makes me wonder as to what does the whole Fiat india officials do all day. they need Accenture to sell their cars ? its pathetic.

    Wake Up Fiat India........................Plz!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
  2. amit

    amit Superiore

    Navi Mumbai
    I have said this in the past and I say this again. It's the skepticism against Fiat that makes issues like dealers not calling back into deal breakers. Are we suggesting that other car companies dealers call back? I went to look at a Getz years back when the car had already flopped. I wasn't offered a test drive as 'the car is out' and was promised one in 3 days. That was in the year 2005. Flash forward to June 2009. I am deciding between Punto and i20. No test drive of the i20 offered as 'the car is out'. No calls followed either. Yet, i20 sells over 7K units every month. Why doesn't lethargic dealer attitude hit sales of other car companies?

    Against that, I registered for the T-Jet test drive on the website before it was launched. I was called by Fiat about 4 times and the dealer followed up about 4 times with me inviting me / sending the car over for a test drive.

    Think about this. If it was another car maker, your friends would have tried with another dealer if one wasn't responding. Because it was Fiat, the lethargy of one dealer sealed the nail in the coffin.

    Having said that, this article raises some very vaild points. It's good to know that this time Fiat is aware of where it's going wrong and it seems like they are trying to correct the course of where the JV is headed.

    If my two cents are any worth, here I go with my suggestions:

    - Position Fiat's as technologically and dynamically superior cars to Tata. You are not lying anyway! Why shy from speaking the truth?!

    - The 75hp MJD and 90bhp petrols are fine BUT give buyers an option of more powerful variants. The irony of Fiat's situation is they launched the Palio 1.6 in 2002 when cars costing 10 lakhs came with 90bhp engines and when the market is ready to accept a powerful car, they are sticking to lesser powered variants. A LOT has changed in 8 years guys!

    - What is so special about a Fiat? Most owners and auto enthusiasts know. The few that don't, realise it after driving the car for a few thousand kms. Most of the prospective buyers never know and hence never give the brand a shot.

    - The biggest problem is Fiat isn't managing to get people into the showrooms to consider their cars. Today a small car buyer considers a Polo but not a Grande Punto. First step is to get people into your showrooms to take a look at your cars. As it is the conversion rate must be about 20% so for every 10 people that come to your showrooms, only 2 will bite. Problem is out of 10 prospective buyers only 2 consider a Fiat!!
  3. sunnyside


    Tata Motors-Fiat JV hits rocky road over dipping sales

    From CNBC TV 18:

    The joint venture between Tata Motors and Fiat has hit the rocky road over dropping sales volumes, reports CNBC-TV18’s Swati Khandelwal Jain quoting sources.

    It is learnt that the JV between Tata and Fiat has been facing issues over drop in sales volumes. Hence, Fiat India may set up solo touch points on a trial basis in a few metros. They are also planning to set up branded boutiques in Pune and Delhi early next year, sources add.

    Link to the Video on http://www.moneycontrol.com/tv/display_ ... rticle_Vid

    Now i'm getting serious jitters on going for Linea. :firey
  4. royj

    royj Esperto

    This is old news. These journos want to kick up something and get any news to put on air.
    The intention of Fiat to set up brand boutiques is at least a two month old news in this forum.
  5. mat46


    Re: Tata Motors-Fiat JV hits rocky road over dipping sales

    You should have jitters going for any car by this logic. TATA-FIAT JV will last so long as TATA source FIAT engines and FIAT need TATA dealer network.And this dependancy is going to be there for quite some time. In fact I feel FIAT has a upper hand in this, as it is easier developing a dealer chain compared to developing a high quality engine.

    But, yes FIAT was tentative in its launch of Tjet. It should have been all across India at the start itself, then there would have been some momentum, you would have seen more Tjets on the road, which in turn would have resulted in more footfalls at dealer showrooms.

    Also, the Tjet+ should have been AT .

    In the short term , next six months to a year, FIAT will struggle a bit to get the momentum going, with or without 1.6 Diesel.

    But, looking forward, FIAT has a very big ACE, it has one of the best CNG technologies in the world. Going by the current petrol prices, anybody who will come with alternative technology will have a ready market, and CNG probably will drive the mass market.

    So if FIAT has good conversion kits for Petrol to CNG , the resale values of the petrol puntos and lineas will be high, assuming you plan to sell them then and not convert.

    Now let us look at the competition:
    ANHC will be hit the maximum by Ventos and Etios. As its sales come down, those with ANHCs' will also get jittery.

    Vento is essentially a 4 seater. You cannot seat 3 people comfortably in the rear. In India after FE , this is an important criterion.
    Vento petrol simply run out of juice after a point. Infact my quest for a new car was vento driven, they offered vento petrol for TD, and Tjet got launched the next day, and Tjet is MACHO.

    Etios , no idea, if it is peppy it will sell, and it is going to affect Vento max.

    I would say, it will take six months or so before you can spot the leader.
  6. Ravi

    Ravi Staff Member Janitor

    Grande Punto 1.3
    Fiat hopes for a turnaround with new retail strategy

    Working closely with partner Tata Motors; co betting on to-be-launched small car.

    Fiat's falling numbers have been a cause for concern and the target of nearly 50,000 units for this fiscal is unlikely to be achieved. By 2014, Fiat is looking at sales of 130,000 cars in India which translates into a 5 per cent market share. The small car will be a key component of this target and is expected to do at least 6,000 units a month.


    Fiat Auto, whose car sales in India have been little to write home about so far, is now readying a new retail strategy with partner Tata Motors.

    Top sources told Business Line that the details would be unravelled in the coming months.

    “There is absolutely no issue with any of Fiat's products. The top priority is to ensure a stronger customer connect with the company,” they added,

    Reports have been doing the rounds that the core of the problem is the joint retail business model which has only led to brand dilution. According to the grapevine, some dealers are apparently more inclined towards promoting Tata products.

    “This is absolutely untrue. This alliance is still in its nascent stage and hiccups are bound to occur. It has been a useful learning curve for both companies and things will only get better from now,” sources said.

    Falling numbers

    Fiat's falling numbers have been a cause for concern and the target of nearly 50,000 units for this fiscal is unlikely to be achieved. (So far between April and November this year, the company sold 14,956 cars – Palio, Fiat 500, Grande Punto and Linea – against 17,079 cars for the same period last year.) The company is betting big on its sub Rs 4-lakh car which will be launched in end-2012.

    By 2014, Fiat is looking at sales of 130,000 cars in India which translates into a 5 per cent market share. The small car will be a key component of this target and is expected to do at least 6,000 units a month. By that time, it is imperative for Fiat to get its act together on the retail front.

    “The company cannot afford any goof-ups as this product is critical to the first phase of building its market share in India. If anything were to go wrong, it would be back to the drawing board,” an automobile executive said.

    New retail plan

    This explains why the new retail plan is so important. Between now and 2012 (when the small car is due to debut),

    Fiat would like to convey its India vision to the customer. This is particularly relevant when some of its earlier offerings such as the Uno and Palio, which promised plenty, lost their way after dramatic starts.

    The Uno, in fact, was touted as the first challenger to the Maruti Zen way back in 1995-96. It had everything going in its favour, including a diesel engine, but a lockout at the Mumbai plant resulted in production schedules going haywire. This was a big setback for a car that had garnered nearly three-lakh bookings at that time.

    Likewise, the Palio began with a bang but Fiat just could not capitalise on the initial momentum. There were issues with dealers too who were grappling with huge stocks. What was particularly painful is that headquarters in Turin were sorting out their own problems which, in a sense, hit the India operations.

    Starting afresh

    Since that time, Fiat has decided to start on a fresh note with Tata Motors. India is just too important a market to ignore and from the company's point of view, it makes more sense to take one thing at a time.

    What is interesting, though, is that Chrysler products do not feature in its five-year vision plan for India.

    On the other hand, Russia, China and Brazil will get a larger range of cars and sport-utility vehicles till 2014. Fiat bought a 20 per cent stake in Chrysler as part of a bail out package and is bullish on its turnaround prospects.

    Source - http://www.thehindubusinessline.com/201 ... 120200.htm
  7. gagi_vid


    Re: Fiat India - Sales Thread

    Fiat India plans new strategy for India to increase car salesBy CarDekho Team 30 Dec, 2010 at 3:36:51 PM
    Fiat India which is currently in alliance with Tata Motors, sells its cars across country under the partnership with the Indian counterpart but now it plans to develop its own strategy for the domestic auto market. The Italian auto manufacturer is working towards the new strategy to pick up the drowning sales graph of the company's car in the domestic auto market. As per the new marketing strategy it will be working towards making new promotional initiatives and marketing for a stronger car brand image and also increase on the sales and service network in India.

    Fiat India has big plans to capture a major market share in India. The Italian craftsman plans to sell almost 1,30,000 units every year by 2014. The auto company is also working towards a new technology which it wishes to establish in the small car segment of under Rs 2 lakh. Fiat India is focusing on covering the small car market in India wherein will compete against Tata Nano ad Maruti Alto and the likes.

    As per the auto industry experts, Fiat India's moderate performance in the Indian auto market is because of it drowning sales and poor sales and service network. Fiat in India uses Tata's network for sales and service of its cars. The Tata Motors and Fiat are in joint venture with equal partnership. As per the reports, Fiat India is way behind its set sales target of 50,000 cars for this fiscal year. But its weak sales and service network did not allow the company to achieve the target.

    The Italian car maker has five car models in the Indian auto market Fiat Grande Punto, Fiat Linea, Fiat 500, Fiat Palio Stile and Fiat Palio Stile Multijet. Among these car models only two stand out in the Indian auto market.These are Fiat Linea and Fiat Grande Punto.

    Fiat India, recently enjoyed a light moment as it saw a participation of 125 enthusiast from various parts of the country. Around 60, Fiat cars participated in the event which commenced in Pune. Fiat India is keen to establish itself again in the Indian auto market.

    here is the link site car deko..

    http://www.cardekho.com/india-car-news/ ... s-3457.htm
  8. gurus

    gurus Amatore

    Re: Fiat India - Sales Thread

    Article says small car will compete against Nano...I think Nano will sell better with Fiat engine from 2014 onwards....:(
  9. Ravi

    Ravi Staff Member Janitor

    Grande Punto 1.3
    Re: Fiat India - Sales Thread

    This is wrong info - Check - viewtopic.php?f=16&t=316
  10. Narayan

    Narayan Regolare

    Excellant article. If anyone has any insights into the reports that Accenture / JD power has, it would be a nice read as well ! Hope Fiat is listening and making changes as we discuss out here.

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