Italian carmaker Fiat is set to arrange its own car dealer network in India for enlarging its inactive sales, thus putting an end to a 6-year distribution agreement with Tata Motors.
This huge leap should surely help in establishing its business in our country, as said by Fiat, a growing market where foreign producers Ford, Honda and Nissan have functioned currently to take more hold of their own operations.
Around 20,000 cars per year are being sold by the company in India, but it hasn’t revealed how much it will be investing in evolving its dealer network there. However Fiat lags behind the European and U.S. competitors in high-developed Asian markets, with minimal existence in China, the world’s hugest market.
Fiat is all geared up to establish a new company to sell out its models and also increase the network of Fiat-Tata dealerships. Fiat has its own share of brand recognition. From the mid-1950s to 1997 in India, it has sold its 1100 sedan under license, firstly as the Fiat 1100 Delight and then as the Padmini. The car is mainly utilized as a taxi.
Currently Fiat is selling its Linea, Palio and Punto models in India, and focuses to initiate introduce more brands from a portfolio involving Alfa Romeo, Chrysler, Dodge and Jeep.
The companies responded in a statement, “The expansion of new Fiat dealer network for India will begin progressively. Around the 178 existing Fiat-franchised Tata dealers in 129 cities will be promoted in a great way in order to form the foundation stone of the future network.”
In 5-years time, the joint enterprise of Fiat and Tata cars has produced almost 190,000 cars and 337,000 power trains.
As per Tata Motors chief financial officer C.R. Ramakrishnan in February, the joint enterprise with Fiat was not producing the results or sales that we were expecting.
In March Fiat chief Executive Sergio Marchionne told that the partnership has attempted hard to do whatever they could, but it didn’t work as anticipated.
This huge leap should surely help in establishing its business in our country, as said by Fiat, a growing market where foreign producers Ford, Honda and Nissan have functioned currently to take more hold of their own operations.
Around 20,000 cars per year are being sold by the company in India, but it hasn’t revealed how much it will be investing in evolving its dealer network there. However Fiat lags behind the European and U.S. competitors in high-developed Asian markets, with minimal existence in China, the world’s hugest market.
Fiat is all geared up to establish a new company to sell out its models and also increase the network of Fiat-Tata dealerships. Fiat has its own share of brand recognition. From the mid-1950s to 1997 in India, it has sold its 1100 sedan under license, firstly as the Fiat 1100 Delight and then as the Padmini. The car is mainly utilized as a taxi.Currently Fiat is selling its Linea, Palio and Punto models in India, and focuses to initiate introduce more brands from a portfolio involving Alfa Romeo, Chrysler, Dodge and Jeep.
The companies responded in a statement, “The expansion of new Fiat dealer network for India will begin progressively. Around the 178 existing Fiat-franchised Tata dealers in 129 cities will be promoted in a great way in order to form the foundation stone of the future network.”
In 5-years time, the joint enterprise of Fiat and Tata cars has produced almost 190,000 cars and 337,000 power trains.
As per Tata Motors chief financial officer C.R. Ramakrishnan in February, the joint enterprise with Fiat was not producing the results or sales that we were expecting.
In March Fiat chief Executive Sergio Marchionne told that the partnership has attempted hard to do whatever they could, but it didn’t work as anticipated.
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