Fiat’s new India plans

Fiat India is falling short of its 50,000 units target for this fiscal year despite a boom in the Indian car market. The carmaker sells its cars in partnership with Tata Motors. Fiat is now going to incorporate a new retail strategy to change the gloomy trend facing its products in India. With the help of the new strategy Fiat aims at grabbing 5 per cent market share in India this translates to a sales figure of 1,30,000 cars by 2014.

This retail strategy has been evoked by the company’s low sales figures. The new strategy includes steps like – new marketing and promotion techniques to boost brand image and enhance sales and the company’s service network.

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Fiat is also likely to come up with a car in the volume segment or the segment that has the likes of Maruti Alto and Tata Nano under the Rs 2 lakh category.

At present the Fiat portfolio has two impressive models namely the Fiat Punto and Fiat Linea. But despite these good performers the sales figures have been a bit gloomy.

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In a country that is obsessed with cost of the vehicle and its overall cost of ownership a weak dealership network is not doing Fiat much good. The company uses Tata’s network for selling and providing service for its cars as a part of these firms' 50:50 joint venture.

Whereas the market leaders have an advantage of a huge sales network that provides excellent services to customers. The new strategy is likely to give the company new direction and solution to these issues.