Soon after its split up with TATA, FIAT has started doing things they should have done a little before. Very recently did they launch a lifestyle showroom FIAT Caffe in Pune, it’s second in India. At the same occasion the company also launched a Limited Edition of its premium hatchback car, Punto Sports.
In an over 2 million strong Indian market, all FIAT could garner were a miniscule 18,000 units for the whole of 2011-12 which transforms into a paltry market share of 0.7%. The biggest gripe is that it has got almost everything right with respect to its products – people just do not fail to admire them, their build quality, performance, reliability etc. However, it’s the sad sales and service network which is hampering its sales big time.
After the breakup, FIAT seems to be considering things with open wings.
- The Italian major plans to have 80-100 total dealerships in the next 18 months
- These dealerships would be spread across 35 Indian cities
- FIAT also plans to double its market share in the coming 2-3 years
- FIAT is also working on a new product portfolio with its global partner Chrysler for India.
- FIAT is also planning to drive in the lifestyle JEEP brand to India
- To build its own infrastructure, FIAT has confirmed 23 TATA dealers out of the 40 they approached
It would be interesting to closely follow and observe how FIAT would bring back the laurels. What we feel is that FIAT should identify correct products for India and they could well be doing good business here.
Source: Economic Times