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Fiat fails to impress Indian customers despite of numerous efforts

Posted On : Dec-22-2011 | seen (608) times | Article Word Count : 403 |

Fiat Motors, world's sixth largest car maker is trying very hard to improve its market value in the Indian automotive segment. In the year 2006, Fiat India formed a
Fiat Motors, world's sixth largest car maker is trying very hard to improve its market value in the Indian automotive segment. In the year 2006, Fiat India formed a collaboration with Tata Motors and started selling its products in the market. The two companies merged their respective retail networks and this strategy worked- but only for Tata Motors not for Fiat India. Tata Motors Indian got Fiat's engines for its cars and showed an impressive increase in sales.

The estimations or stats also suggests the same as in the fiscal year of 2010 which ended by March 2011, industry recorded a hefty growth rate of almost 30 percent. Fiat was the only company whose sales volume actually fell under 15 percent giving rise to rumors that the joint venture helps Tata products more than Fiat cars.


In India Fiat motors is facing two major problems that are, the old brand image made by Premier Padmini is still stuck in the mind of people and the biggest issue is the problems with partners at the actual point and service centers. In order to change this mind set company introduced two of the cars Punto hatchback and Linea sedan in Indian automobile industry. With this cars Fiat's market share was less than 1 percent last fiscal which is the shocking news for the company in India. Even Volkswagen India making its entry in India only in 2007, commands a share of 2.04 percent. The first point is fading with cars like Fiat Punto , Linea coming out of the FIAT brand name. But what about point number 2. This reason is actually acting against FIAT and many consumers are shying away from FIAT due to it.




In the sedan segment where companies like Toyota , Honda and Volkswagen sell nearly three products each, Fiat India only sell Fiat Linea under its hood. So the massive disconnect with the customers was apparent, leading to speculations that the joint venture with the Tatas was about to be scrapped. Now -a-days Fiat is totally dependent on Tata Motrs for Sales, Service and Spares. This is the main reason behind low sales so this is the main point where Fiat India needs to be more independent. Company should not allow this strategy to be their weak point in Indian automotive segment.





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Keywords : Fiat cars, Renault Fluence, Fiat Punto,

Category : Travel and Leisure : Cars

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