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Fiat India To Launch A Car
Fiat will design this car considering Indian driving conditions, another tailor made small car India. As Fiat UNO did not have any brand image in India, Fiat is looking out for a new brand name for this small car for Indians.
Fiat is quite happy with the sales of its premium hatchback Punto. But, with the small car, Fiat will address the needs of a larger segment of buyers. The small car will help Fiat to increase its 1.5 % market share. Fiat has a target to sell 40000 cars in India during 2010. Fiat is facing a fierce competition from other competitors like Ford, Hyundai who have got a full lineup of cars from small cars to SUVs but Fiat has got Punto and Linea, while Palio model did not sell well. Fiat is eying on producing an Indian specific small car just like how Hyundai met success with its I10 and Ford's success with FIGO.
Fiat has tied up with Tata Motors and the companies together take care of the distribution of Fiat cars. This has somehow brought confidence among Fiat buyers which were worse before the tie up. Still, if Fiat wants to focus on mass market with small cars, it has to ensure good service and easy availability of spare parts throughout the country. For instance, the major factor behind the success of Maruti is because of its wide distribution, easy availability of spares and cheaper running cost. To keep the cost as low as possible, car makers must heavily localized the components and win over the competition with aggressive low prices, just like how Tata Nano has got reputation. Will Fiat's small car will be a big hit? Lets wait and watch.
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