As per Economic Times (August 15 and September6, 2011), and Business Standard (September 7, 2011), both Fiat and Tata Motors CEOs revealed on their statements that they’re having a ‘revisit’ at their 50:50 joint venture partnerships to see if it could be made more realistic, admitting that the contractual relationship suffered nearly 15% drop in sales over the fiscal 2010-2011. From these reports we figured that Fiat might come up with independent sales and service network across India. Our speculation came true when Fiat India inaugurated the first ever Fiat Caffé at Janpath, New Delhi. Lately, moneycontrol.com (A wing of CNBC TV 18) reports that Fiat India is working on a better distribution network across India.
The new parameters of revision are:
- Discontinue supply to 40 Tata-Fiat dealerships across 20 cities across India.
- Encourage dealers to open more Exclusive Fiat Outlets i.e. Fiat Caffé.
- Increment of dealer margin from 5% to 8.5%.
- Plan of opening 20 Exclusive Fiat outlets (Fiat Caffé) across the country by the end of 2012.
Just before the Indian Auto Expo, Fiat India came up with the much awaited revised models of the Punto and Linea. We appreciate the steps taken by Fiat India to reclaim the lost pride of its image in India and improve relationships with customers.