FIAT Ends Distribution & Service Alliance with TATA, Manufacturing Would Continue in Tandem

In a bid to revive their fortunes, FIAT is trying their tooth and nail to find a way out of it and make a cut at the customers. In a latest move from the company, both TATA Motors and FIAT would realign their joint venture in India.

  • – Fiat will take over its distribution which was handled by TATA till now.
  • – Fiat will also take over the service responsibilities from TATA.
  • – Fiat would be forming a group owned company to take care of both the distribution trails as well as servicing of Fiat branded cars.
  • – FIAT will encourage the 178 Fiat franchised TATA dealers in 129 cities to lay the foundation of expanding FIATs dealership network.
  • – However, manufacturing would continue in tandem with TATA at Ranjangaon plant near Pune. This facility produces both FIAT and TATA cars along with engines and transmissions for the Indian as well as the export market.
  • – TATA-FIAT joint venture has produced approximately 1.9 lakh cars and 3.37 lakh powertrains in the last five years.

 TATA FIAT JV MotorBash sales FY 2012


FIAT could only sell a meager 16,073 units in India in the complete last financial year which was 24% lesser than what it had sold in the previous fiscal. Compare these figures with the total 2.6 million passenger cars that made it to the roads during the last fiscal.

In stark contrast, TATA made merry by selling its highest ever figure of 3,13,710 units in the year 2011-12 which were 5 percent over the previous year’s figures.

While there is nothing wrong with its products and promotions of their cars, this step seems to be a right signal to Fiat’s growth. We have seen big time Fiat lovers going for other cars just because of the horrible experiences with the current servicing standards and behaviors. In order to boost its sales and create a mark in the minds customers here in India, they might also launch a smaller car than Punto and price it aggressively and service/pamper them more so that the word penetrates faster across the country.

How about a Panda, Fiat..?



Saad Khan

Editor MotorBash


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