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Fiat India New Strategy
This has been negated by the officials of both the companies. They claim that the tie-up is at the experimental stage and such dispositions may be inevitable at this stage. The problems make them analyze in a close manner to get rid of them in a powerful manner, they said. Fiat"s earlier target for this fiscal was 50000 units which has become gloom due to the decline in sale for consecutive months. During April-November, the company could sell 14956 units against 17079 units sold in the same period of 2009. The volume included Fiat 500, Grande Punto, Linea and Palio. Sensing the fall, the company official also hinted that the target proposed for this year might not be reached even in the next fiscal. Yet the company is pinning on the hope of boosting the sale by launching its sub-compact car @Rs4 lakh in 2012.
Fiat is understood to have noted the growing importance of small cars in India. With these speculations Fiat intends to reach the 130000 mark by 2014 which may become 5% share in the Indian car market then. Fiat believes that it could sell around 6000 monthly units of small cars by intensifying the retail market. Fiat has learnt a lot with its failure meet with the earlier launches of Palio and Uno. Of these, Uno was expected to counter and contain the spirit of Maruti Zen some 15 years ago. Due to the unexpected lock out in the Mumbai plant Fiat had to face production constraint then. This thwarted the thumping growth of 3 lakh bookings then, it is to be remembered.
Palio too impressed much at the initial stage, but Fiat could not capitalize the trend set then for more reasons, especially the one from the dealers. Another major problem that Fiat faced then was the least cooperation from its apex body in Turin, which too was facing problems locally. Now the time has come for Fiat to fix its angles in the growing Indian market with the assistance rendered by the local giant Tata Motors. A major exception in the range is Chrysler products, which are slated for free flow into the roads of Brazil, China and Russia in the period upto 2014. Fiat is having 20% share of Chrysler and is maintaining a good deal of cars and SUVs.
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