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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. royj

    royj Esperto

    I feel Forster is right. Fiat alone is responsible for its poor performance here. :A
    Even after months and months of low volume sales, there is absolutely no media management or attempt from their side to promote their products or challenge what ever adverse publicity it faces.
  2. Please read this -

  3. PaddleShifter

    PaddleShifter Staff Member Janitor

    Grande Punto 1.3
    @Aanand ji- That was a one odd incident. This isn't common. 80% blame goes to the dealership and 20% to Manikjeet (my apologies to you Manikjeet). The car had a serious fault and huge drag to one side as per Manikjeet.
    His fault was that he hadn't done PDI as per recommendations.

    Hope you guys know that even car manufacturers get your signatures on a form where you agree that you were given complete tool kit and other standard accessories along with everything to your complete satisfaction.

    Dealership has a business and profit to make. They will have to sell the car. It is upto you to make sure that everything is in order at the time of delivery.
  4. sungoa2010


    I don't think Fiat alone is responsible. It is true that they can do things better. Look at Renault. The brand has gone to hell here with M&M. The ride quality is excellent in logan but it went unnoticed.They realized and reacted.
  5. Fiat, Tata fine-tune sales agreement
    Tata may ask dealers to set up separate showrooms for Fiat cars; declining sales put JV under strain

    Fiat India Automobiles Pvt. Ltd, an equal joint venture between Tata Motors Ltd and Fiat SpA, is re-working the sales and distribution arrangement for Fiat cars in India in an attempt to improve sales and strengthen the brand.
    Currently, both Tata and Fiat cars are sold by a dealer under one roof. This arrangement is set to change.
    According to people with direct knowledge of the plans, Tata Motors may ask some of its dealers to set up separate showrooms for Fiat cars.

    This comes close on the heels of Fiat’s decision to set up so-called brand centres in different cities. The theme-based centres will be up and running in the next two months.

    Rajeev Kapoor, president and chief executive at Fiat India, said that on account of space constraints within the existent dealerships, there could be separate showroom areas for Fiat while the dealerships will remain common. “However, nothing has been finalized as yet.”

    With the introduction of newer models by both the companies, space in some of the showrooms has become constrained, Kapoor said. “We are evaluating whether it’s possible to extend the existing area within the same set up. There are some which do not have the scope of further expansion and, as such, will have to procure another showroom. Everything is being worked upon and there is no common formula.”

    In an email response, Tata Motors’ spokesman said, “Tata Motors has repeatedly said that it, as a distributor of Fiat cars in India, is continuously working with Fiat at improving the sales of the Fiat range in India.” He declined further comment.

    Fiat’s partnership with Tata Motors has two parts—a joint manufacturing facility in India that produces cars for both firms; and a distribution agreement under which Fiat retails its products through Tata Motors’ outlets.
    With Fiat’s sales declining month-on-month, the joint venture is under strain on the sales front. In September last year, Tata and Fiat engaged global consulting firm Accenture Plc to study and suggest ways to address Fiat India’s weaknesses in product, price, positioning and distribution.

    The company’s sales dropped 14% to 17,405 units in the 10 months of the current fiscal to January, even as domestic car sales expanded by almost one-third to 1,599,495 units in the same period over a year ago, according to the Society of Indian Automobile Manufacturers, or Siam.
    In a bid to revive sales, Fiat offered discounts on car purchases by Fiat and Tata Motors’ employees and vendors in February.

    The company sent out emails to employees of Tata and Fiat and their vendors announcing the scheme, which allows them to buy the Punto and Linea models and avail a discount of up to Rs.1 lakh.
    According to one of the persons familiar with the development, the companies (Tata and Fiat) will adopt a dual-phase strategy.

    The first phase, which is already under way, involves brand improvement, and the second phase, which is a long-term strategy, will take into consideration the distribution network.

    As part of the new arrangement, Tata and Fiat models will not sell in the same showroom and Tata Motors will ask some of its dealers to set up separate outlets for the Fiat vehicles. Still if the company doesn’t get good response from the dealers, Fiat may consider appointing its own dealers in addition to the existing ones, said the person.
    Experts are sceptical whether the new arrangement will push sales. Puneet Gupta, an analyst at sales, forecasting and research firm, IHS Automotive, said that while the new model will help Fiat serve its customers better and enhance its brand appeal, “its success will depend on the number of Tata dealers who are willing to invest in separate outlets”.

    “Fiat also needs to look into the product proposition. Altering the sales and distribution alone will not help,” said another independent analyst who did not want to be identified.
    Dealers do not seem to be enthusiastic either.

    “It’s not feasible to have two separate outlets. The new outlet will increase the recurring expenses even as the fixed costs remain the same,” said a Mumbai-based dealer who declined to be identified. “Why would one set up another outlet if volumes from both the brands are low?”
    “What matters more is how the customer perceives the brand and the value he sees in buying it,” said a Delhi-based dealer who also did not want to be identified.

    http://www.livemint.com/2011/03/0720502 ... ?atype=tp#
  6. Sumit

    Sumit Superiore

    good move from Fiat India, it shud pay good returns in long term basis.
  7. R Alavandar

    R Alavandar

    Tata has definitely gained in the partnership by introducing Fiat engines in Tata cars. Fiat MJD 1.3 is a far superior and refined engine compared to Tata 1.4 TDi. Fiat LInea is my third car, the first two being a Maruti 800 and an Indigo Marina. I had also driven City and Ford Fiesta. I rate Fiat Linea definitely a superior product. Now, it is sad that Fiat has an excellent product but is unable to sell it in volumes it deserves. I feel reasons are a) Misconception that Linea is under powered. Power is not every thing in a car b) Poor image and Fiat has not done much to change it by way of customer interactions and advertisements. In most forums, it is the satisfied customer doing the talking. Fiat has so far done nothing to alley the concerns of the customers> Fiat's voice should be heard in various forums. c) More advertisements are required. Also, Fiat does not advertise the technical superiority of the product like better torque, wider wheels, reliability of machine, fuel economy despite wider tyres, once in 15000 km servicing as against the 5000 km mandatory visit of City etc. Fiat just wants guaranteed admiration without going into one to one data comparison with other products. d) Tata service stations do not offer any exclusivity since we had to vibe for attention vis a vis taxi owners. This can be overcome by simply offering the Fiat car to be picked up for servicing and door delivered on completion. For my Marina, Concorde used to offer this facility and I made full use of it. e) Having a brand ambassador will help. f) The out look, approach and perseverance of sales people should be more convincing and pampering. Because, end of the day, customer is the God and he decides.
  8. Please the brand ambassador should not be a cricketer.
  9. Dilip_dmk

    Dilip_dmk Superiore

    Delhi, India
    New Delhi
    Grande Punto 1.2
    ^^^ Should be someone like .... Hrithik Roshan ,,,
    Atleast some eyes would also be on the car when the advt. rolls ...

    SRK would hav been bttr ,,, bt he s already booked for some dibba car [ cant recall its name ]

  10. Vikrant Joshi

    Vikrant Joshi Regolare

    Good to see the reworking strategies of Tata-Fiat... but all in paper....hope they act soon ::O
    Fiat should train its sales force more...and do some mock calls with the existing customers :mrgreen:

    Had got a friend of mine to the showroom and introduced him to the sales executive whom I had dealt with.
    Absolutely no talk on Blue and me or suspension/ride and handling...
    I had to do sales pitch for him :drinks

    We should get Salman as the brand ambassador :cool: ..

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