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Fiat India is a segment of Fiat Auto of Italy. Their car brands include Fiat, Alfa Romeo and Lancia. Fiat Group or Fiat S.P.A. was formed in 1899. They are into automobile manufacturing, engine manufacturing, financial and industrial enterprising. Fiat started their Indian operations in the year 1905, with Bombay Motor cars Agency being their first sales agent in India. Later, they also had a pact with Premier automobiles Limited for license and servicing. Thereby selling 1100 and 1100D Fiat, Padmini and Uno. Uno has been
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Europe's favorite car for almost two decades.
However, right now they are working on their "178 World Car Project" which includes international cars like Siena Sedan, Siena Weekend Station Wagon, Palio Hatchback etc. This new range of fiat cars is targeting the emerging Indian market in all car segments.This project has been specially designed to improve the production of cars in the overseas market. Fiat Group as a whole is a very reputed automobile company in the global sector.
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It has a great history of about 100 years. Its reputation in the international market is spotless. Its reputation is so high that it is the only automobile manufacturer to have won the prestigious "EUROPEAN CAR OF THE YEAR" award for a record number of nine times. However, its Indian operations have not been very fruitful in the recent past. The project will ultimately focus on inducing the consumer to buy fiat cars.
There were several issues like dealership, customer care, spare parts etc. which were not looked into properly resulting in low sales and losses for years. Hence spoiling the earned name and reputation of the company in India. Along with that, they also lost their foothold in the Indian market. At one point of time, there were strong rumors that Fiat was one of the 12 sick overseas manufacturing units to be closed in India. But, later it was clarified by the Fiat India Group that they were not closing down their operations in India. And as a matter of fact, they would be re-structuring their entire operations in India. Their collaboration with Tata Motors for the marketing of the cars has been fruitful so far. Tata Dealers have consequently become the fiat car dealers. Important aspect of fiat cars has also been looked into smartly and now the scene is becoming favorable for them.
Moreover, after, Dr Paolo Castagna took over as the Managing Director of the company, he said that they clearly understood the importance of the issues of the Indian market and that their determination of resolving them is also very firm. Moreover he said that their main focus is to stay in the Indian market as India has great strategic importance. When asked about the losses that Fiat India has incurred. He replied by saying that the parent company has already written off the loses. Thus, making things easier for Fiat India to operate.
The company is very optimistic about their Palio brand. They believe that this particular car will change the outlook of people towards Fiat India once again. They believe that Palio will help them regain their lost confidence and their financial position as well. At this point of time, they have one operational manufacturing unit in Kurla Complex in Mumbai and a non-operational manufacturing unit in Ranjengaon (near Pune). The newer products of Fiat will be manufactured in Pune and not in Mumbai as the cost of production will be less in Pune and it will also help in improving supplies.
According to Dr Paolo Castagna, internal reorganization of the parent company led to the poor performance of their Indian counterpart. The focus got diluted and hence it reflected in poor sales and profit. However, he said that the Indian management has been completely changed, with local executives being given important designations. Thus, making the management more open to Indian ideas. This will further help them in having better dealer network and increasing customer confidence.
Moreover, he firmly believes that the situation will change and there would be better market of Fiat India in the coming years. There is growing trend observed in the car industry of purchasing the used cars. Fiat used cars have also attracted quite good numbers of buyers.
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