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Worth Opening Dealership?

Discussion in 'Hangout' started by Kaushik Talauliker, Feb 25, 2015.

  1. Kaushik Talauliker

    Kaushik Talauliker Novizio

    Messages:
    41
    Margao Goa
    Margao - Goa
    Punto Evo 1.3
    I am from Goa. Here there is less awareness done by dealer to keep fiat alive for whatsoever reason. There is no Proper Showroom neither Exclusive Service Center. In short no 3S facility.
    Couple of times Fiat Executive approached for the proposal and some how didn't clicked for the space and the area that they considered .
    Now friends i have considered the space required for Fiat integrated 3-S facility and would really require your help / suggestion pros / cons to go Ahead.
  2. ghodlur

    ghodlur Esperto

    Messages:
    2,326
    Thane
    @Kaushik Talauliker

    Thats good news. Good to know that a TFIian is serious of providing quality service in Goa. Can you highlight a few things:
    1) Where is the location and how much area - will it cover only the workshop or dealership too
    2) What support/expertise is being provided by Fiat?
    3) What manpower have you planned?
    4) Finally whats the budget you are looking at?
  3. prabhjot

    prabhjot Esperto

    Messages:
    2,455
    delhi ncr
    Hi.

    A couple of thoughts/tips, without any expertise.

    Consider an e-commerce marketplace type strategy for Goa, which is the country's by far most advanced state. That way real estate prime location costs can be kept in check. I feel real estate costs are the bane of small-sales car dealerships like Fiat's (or Skoda-s or Renault-s or VW-s).

    Do not invest a penny until you hear and critically evaluate FCA India's marketing and product plans, especially for the Jeep brand (which is what IMO you should gun for, if they don't allow Fiat and Jeep to be sold together, that is.)

    Having said that, Goa seems to be just the place for a good 3S Fiat operation: I gather the existing ex-Tata dealer is not much good at all, and hasn't been for years! You will have a captive clientele for ASS and at the same time have decent prospects for sales too, given Goa's sophisticated-cosmopolitan character.

    Ideally a Fiat-cum-Jeep dealership and ASS set-up: a pretty damn good prospect!

    cheers, keep updating!
    PradeepM likes this.
  4. Bala

    Bala Esperto

    Messages:
    1,070
    Villupuram
    If it was my money,a big no,even though there is a huge money in the after sales service.i.e.,if car sells.
    ramjn likes this.
  5. mangeshtendulkar

    mangeshtendulkar Amatore

    Messages:
    232
    Pune
    I would differ here @Bala. In my recent trip to Goa, I observed decent number of Punto and Linea on Goan roads (with GA registration). I think building a good Dealership cum Service Center in Goa would be a good idea. And if this is coming from TFI'an then no doubt that service would be good which eventually shall lead to increased business.
    prabhjot likes this.
  6. Kaushik Talauliker

    Kaushik Talauliker Novizio

    Messages:
    41
    Margao Goa
    Margao - Goa
    Punto Evo 1.3
    Lets answere this
    1) Location is almost center of as per geographic map of Goa. Here most of the Brands like Honda/Toyota/Ford/BMW/Hyundai etc are working under 3-S facility withing 5-6 Km of Radius.
    2)Well support have been not good so far from Fiat which will please any investor to invest.
    But yes i do have presentation to work and Show it to Fiat the plan for Goa 3-S facility which is the key to get best margins and support.
    3)Manpower have already worked on & will be sourced from neighboring & own states accordingly.
    4)Off course least investment in Fiat 3-S would be least 10cr and max to 12cr.

    Thanks for queries
    --- Double Post Merged, Feb 26, 2015 ---
    Well Fiat have not yet consider for sales of Jeep Brand through Existing Fiat Dealership so lets cross the finger.
    --- Double Post Merged, Feb 26, 2015 ---
    Yes Bala i actually had requested for total number of Fiat cars sold on Goan Roads till today since launch of Linea. But collection of this data is still pending and have kept on hold. As far as my knowledge Ratio of Fiat Cars in Goa is high as compared to neighboring states i have visited.
    Business wise there is potential for Fiat to grow under better facility

    Thanks Bala
    --- Double Post Merged, Feb 26, 2015 ---
    THANKS GUYS MORE INPUTS ARE WELCOMED
    Last edited: Feb 26, 2015
  7. asimpleson

    asimpleson Esperto

    Messages:
    3,000
    Heptanesia
    Linea 1.3
    @Kaushik Talauliker, from a business perspective is this your first venture into automotive business?
    I would suggest you to go for a gradual increment approach. You should as @prabhjot mentions be fully convinced that you wont suffer after investing hugely and not getting the returns expected to keep running the show worthwhile. There are dealers in Mumbai who own multiple brands. One dealer owns VW and FIAT and Nissan too.

    A simple data if it takes time and collection of data is pending!? :muted: in this age of computerisation; I mean are they at Fiat not having this data to share or you have not been getting this already available data?

    How about you aim for a Fiat authorised service point, and a smaller sales area something that could be managed at fraction of investment cost?
    prabhjot likes this.
  8. Kaushik Talauliker

    Kaushik Talauliker Novizio

    Messages:
    41
    Margao Goa
    Margao - Goa
    Punto Evo 1.3
    Fiat do have data for sure but they might think this might demotivate for opening dealership.
  9. sidnaique

    sidnaique Timido

    Messages:
    22
    Goa
    Punto Evo 1.3 90 HP
    @Kaushik Talauliker
    I am from Goa (Porvorim) and I recently booked Punto Evo in the Margao Auto Industries Goa outlet. You can't call it a showroom... one punto barely fits inside and only one can be parked outside. No vehicles in stock so its hard even to select colors for your car. Of course these guys are TATA dealers and they themselves don't understand the difference in standard of the two brands they are selling.

    This is from a customer point of view and might not be of any use to you for your business. But as far as my friend circle and people I know in Goa are concerned, Goans have European taste 'naturally'... not only for cars. If FIAT had showrooms and service stations even close to how hyundai has in Goa, you would see a lot of FIATs and/or Jeeps here. I am happy just to know that you are considering this. Good luck!
    prabhjot likes this.
  10. Kaushik Talauliker

    Kaushik Talauliker Novizio

    Messages:
    41
    Margao Goa
    Margao - Goa
    Punto Evo 1.3
    Thankx. They are demotivating customers to buy. Very Sad.

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