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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. saugdas

    saugdas

    Messages:
    62
    Trichy
    Pl do correct me if i am wrong. But i think what Anand is trying to link is how does it increase sales by opening an exclusive SR, since as per his perception the lower sales has got to do mainly with the potential owners' worry about the ASS at a TATA center. Yes, once some one already owns a FIAT , they have a good expereince, the fear is broken and FIAT comes 2nd in JD Power survey. But the fear with many potential owners remains unless they expereince. And one way could have been offering an exclusive place&team for handling the FIAT cars even if TATA owns a share from the management perspective.
    And i will second this thought of Anand , since even if it is known that there is supposed to be dedictaed team for FIAT service, work force gets actually interchanged based on demand -supply at the moment. This is acknowledged even by the people who has handled my car there in the last 3 months. This problem will remain as long as both TATA and FIAT cars gets serviced at the same bays/place.
    Further, from my expr from the 2 times i visited the service center, it is even difficult to enter the gate of the place inspite of having prior appointment over phone since the place is already full with Indica (read taxi), Safari (read netas) etc.. which has been brought in early by their respective drivers and who are real aggresive people and difficult to handle by any polite gentleman. Many times i got sranded on the road while entering and busses honking behind me! When i brought this to the notice of the CRM, even he agreed and was acknowledging that this has been discussed internally many times but no solution found.
    Besides the technical part, the atmosphere also matters and at least to me there is a big difference in this aspect from my earlier exprns with Maruti or GM in my town.
    But yes, overall , my expreince is not bad with the ASS (thanks to Senthilkumar the CRM here) and if JD Power comes to me, even i will rate good to very good but there is a huge scope of improvement on the softer side and strategy required to convince the potential customers on the point raised by Anand.
  2. sungoa2010

    sungoa2010

    Messages:
    2,878
    Goa
    In my opinion the exclusive Fiat outlets is more needed to improve the brand value of Fiat. Fiat is a brand that is actually far ahead than Maruti and Hyundai.But in India it is undervalued. Does Honda has anything put in front of Ferrari or Maserati. Their designs are pathetic. Edges ,edges...... and finally a confused finishing with no matching between front and back. For hyundai they believe that a colour xerox of Monolisa is as good as original. More people should see Fiat cars in Exclusive Fiat outlets. Imagine what will happen to Jaguar and Landrover if they were kept along with sumo,indica and safari. Same thing is happening with Fiat.
  3. @Ravi, I think my mean writing was not helping you to understand my point of view. Anyways, saugdas did mention the same point in detail. Thanks saugdas!

    Here is my point - Why people don't buy FIAT cars? Real answer is they are afraid of FIAT past (ghost) and the A.S.S. Also in few areas people are having horrific buying experience! Customer was beaten up by the showroom folks! I read this on our forum only! Crazy and unbelievable! I don't know where is our saying "Grahak Devo Bhalo"!

    Sales: Now opening these exclusive showrooms will help in those areas where people are not having good buying experience. But initially these showrooms are being opened in Pune, Delhi and Mumbai (later). I stay in Navi Mumbai and also travel to Pune frequently. As per my knowledge people in Mumbai region and Pune are not having this horrible experience of buying FIAT cars from TATA showrooms. So unless these showrooms are opened in those affected areas I don't see a real value out of it. In areas where sales is not an issue, they should focus on A.S.S.

    A.S.S: My comments about the A.S.S. was not about the owners but about what potential buyer thinks. Here are some comments from few people. My brother, who owns Superb and changes car every two years, "Your car is good but then due to that logo people don't buy!". I asked him why? FIAT is reputed brand in world. They have better product. His answer was "No doubt it is a high class product but then FIAT has no brand value in India and TATA service sucks!!!". When my Unit head looked at my car, who drives company provided Honda City, he said "Anand your car is fabulous but then you need to get it serviced at low quality TATA service stations!". Now how he knows about TATA service stations being bad. He owns TATA Safari as well which is driven by his driver. His buying exp was also too bad! When he bought Safari, he had to wait for 2 hours to get the delivery of this vehicle as it was dirty. So he left and asked his driven to bring the vehicle home. I told him that for FIAT cars, TATA has started different bays and different teams do the servicing. His answer was "Still one need to rub the shoulders with the Indica and Indigo owners which are used for commercial service/ Taxi drivers". People refrain from buying FIAT product due to this very fact! So what is important here is to start the own service stations and not only exclusive showrooms. You can't have piece meal approach when things have to move parallel.

    @sungoa2010, How many people in India (general buyers who are not surfing through net etc) know that Ferrari or Maserati are FIAT products. Frankly speaking, I did not know this until I joined our forum and carwale and started reading posts.

    So to conclude – What FIAT needs - focus on innovative marketing, start exclusive showrooms and start dedicated service stations
  4. FastLove

    FastLove Superiore

    Messages:
    606
    Mumbai
    Linea 1.4
    Customer being beaten by showroom folks :-o

    Where and who has posted this on the forum ?

    Sent from my Nexus One using Tapatalk
  5. shashanknathani

    shashanknathani Superiore

    Messages:
    993
    Pune
    @Anand : very true.... For people in India FIAT is related to Premier Automobiles Limited and people still carry that image...
  6. sungoa2010

    sungoa2010

    Messages:
    2,878
    Goa
    I agree that many people doesn't know. But also it is true that brand name is the deciding factor for some of the buyers. My point is that Fiat should not loose those customers. Honda works with brand value. Otherwise if ASS is the only factor SX$ should have eaten Honda's shares. This is very important considering the future premium models. Brand value is some thing that is very very difficult to build up. Another point is that we do not know the details of the terms and conditions of JV and it may not be that easy for Fiat to have it's own ASS.Remember Vista is also product of same factory. So ASS will take its own time. But exclusive showrooms may not create much difficulty for the company. Now Honda is entering the small segment and I am sure many people will think of having the Honda logo not the car. Look at the skoda. One can find lot of horror stories about skoda service but what keeping skoda is the quality and brand value.
  7. saugdas

    saugdas

    Messages:
    62
    Trichy
    In summary for the last 2 pages:
    1) Opening an exclusive SR may be only a starting point but it will not give the expected benifits unless exclusive service centers are opened too.
    2) No problem even if it is 50% owned by TATA, but the cars in these exclusive centers should be only FIAT branded.
    3) I doubt whether just by displaying Ferrari and Maserati will increase the brand value of FIAT in India. Brand values are not earned by mere dispalys in SRs. For example, I don't recollect Honda dispalyed any high funda cars in their SRs to earn customer good will, they earned it thru their actions over a long period of time.
  8. + to saugdas.

    4. To increase the brand value, start innovative marketing of whatever product FIAT has and also confidence on A.S.S.
  9. MOTOR SHOW: Tata Motors CEO Urges Fiat To Decide On India
    By Gilles Castonguay, Of DOW JONES NEWSWIRES

    GENEVA -(Dow Jones)- Tata Motors Ltd's (500570.BY, TTM) chief executive Monday called on Fiat SpA (F.MI) to decide what it wants to do in India so there can be an improvement in the joint venture between the two automakers.

    Carl-Peter Forster and other Tata executives have been open about their displeasure with the way the joint venture has gone because sales of Fiat cars in India have been lackluster.
    Tata, which owns 50% of Fiat India Automobiles Ltd, sold 15,231 Fiat cars April through December 2010, a decline of 15% from the previous year.

    Even Fiat Chief Executive Sergio Marchionne has been public about his dissatisfaction, saying he wanted to rework the joint venture. Under the joint venture, Tata and Fiat make cars like Grande Punto and Linea as well as engines in India. Tata sells the cars through its network.

    Forster, the former president of General Motors Co.'s (GM) European division who joined Tata last year, said the Indian market had become more competitive since the joint venture was established years earlier. The fact that competitors like France's PSA Peugeot-Citroen SA were planning to build plants in the country showed its growing importance as a car market, he said.

    As a consequence, he urged Fiat to decide whether the market was an important area for the Italian automaker.
    "We have to decide whether Fiat sees India as a secondary market or a primary market," Forster told Dow Jones Newswires at a dinner held before the Geneva motor show to celebrate the 50th anniversary of the E-Type. The car, an icon of motoring history, belongs to Jaguar, the premium brand owned by Tata.
    "Fiat has to decide to take on more of a role in India," Forster said. "If it is a primary market for Fiat, what sort of role would they look at playing in India?"

    Forster stopped short of saying what he expected of Fiat, but he said the joint venture was not at risk of breaking up. "There is no question about it."
    R. Ramakrishnan, vice president commercial at Tata Motors' passenger car business unit, recently told reporters that Fiat's India unit would set up standalone "brand centers" to try to boost sales.
    Two such outlets will be set up in the Indian cities of Delhi and Pune shortly, he said.
    Fiat has run into trouble precisely in the places where it needs to get a firm foothold: emerging markets with strong growth potential for car sales.

    Apart from India, it has been obliged to go it alone in Russia after ending a year's talks with domestic maker OAO Sollers (SVAV.RS), which has since gone on to form an alliance with Ford Motor Co (F).
    Forster said he had not scheduled a meeting with Marchionne at the motor show.

    Weblink :
    http://www.nasdaq.com/aspx/stock-market ... e-on-india
  10. sungoa2010

    sungoa2010

    Messages:
    2,878
    Goa
    Foster should also realize that Tata ia also in a competitive world. It should try to produce original products instead of depending on somebodies technological innovations. I really hate the tone. We will see how their innovation Nano do business once other players enter in to the market. If at all he is so much concern about the future of Fiat just go to the places were Fiat vehicles are serviced. He is standing on the biggest problem of Fiat. Tata service is the biggest mental block of potential fiat customers. If it get improved he will be in a double gain.

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