Fiat India looking for new ideas to increase sales

Fiat India is searching for novel ideas to boost its sales. The company is concerned about the failure of partnership with Tata Motors for pushing the brands of the Italian carmaker. The top executives of Fiat India are going to meet the Tata Motors’ management for having a discussion about the new ways for propelling sales of Fiat cars in India. Lorenzo Sistino, the freshly -appointed head of international business operations, might visit the country for taking an idea of the operations that are going on here. The management of Fiat thinks that while the Tatas may enjoy the benefit by powering some of its models with Fiat engines, the engine collaboration and joint dealership has yet to help Fiat for increasing its front end. However, Rajeev Kapoor, president and CEO of Fiat India, commented that the Fiat sales will take some time to pick up in India.

The experts of the auto industry believe that the poor after-sales of Fiat are a major reason for the company’s depressing sales in India even as the sales of Maruti and Tata brands making use of the Fiat engines are booming in the country. Abdul Majeed, auto practice leader at PwC commented that customers are short of confidence in the Fiat brand because of the company’s unsuccessful entries of the past into the Indian market, lower resale value and poor after-sales record. Certain models like Fiat Linea and Fiat Grande Punto have been able to lessen the negative image associated with the brand.

In the year 2007, Fiat and Tata Motors had signed an equal joint venture for building cars and also for producing transmission engines and sets. Since 2009, Fiat India has introduced the Fiat Linea sedan, the Fiat Grande Punto and the Fiat 500 which are sold in the dealerships of Tata Motors and Fiat India till now. The spokesman of Tata Motors  said that the company raised sales’ points for Fiat brands from around hundred to one hundred seventy five in the past four to five months’ period.

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