Fiat India is going to make some radical changes in its product and distribution strategy very soon. The company is registering falling sales figure for quite some time now, which has made its parent Italian company nervous. So, some top official from Italy have recently visited India to help the Indian management rebuild Fiat’s brand equity in the country.
As per the new plan Fiat India is going to launch upgraded versions of hatchback Punto and Linea sedan. The company is also planning a small car for India. As we all know, Punto and Linea cars, part of the current portfolio of products, have been falling short of targeted sales numbers.
The Italian auto major is currently in discussion with dealers to set up separate showrooms so that the Fiat brand gets an identity of its own. “Although Fiat India will look at separate showrooms, Tatas will continue to support the marketing efforts,” said a senior official. Currently Fiat cars are sold through the Tata Motors dealerships.
In 2007, Fiat entered into a 50:50 JV with Tata Motors , for joint distribution and back-end support. In 2010-11, Fiat India sales were down 15% to 21,066 units against a capacity of 80,000 units.
