It seems that splitting up with Tata Motors was beneficial for Fiat as the manufacturer showed an 88 per cent surge in revenues on a year-to-year basis. This happened just after the company had split up with Tata Motors and started concentrating on improving the number of its dealerships across the country. Apart from that, Fiat also started taking car to increase the number and variety in its product portfolio.
The Italian automobile manufacturer’s Indian edition proved that the right decision at the right time proves absolutely essential even if that decision involves breaking up with long time partners. It showed a remarkable growth in the market to 3863 crores INR, which was an 88 per cent jump in revenues, exactly one year after it broke off from Tata Motors and began looking for its fortunes on its own.
Fiat shook hands with Tata Motors in its second venture into the country wherein a number of Fiat models were offered through Tata’s dealerships across the country. However, two aspects led to the fallout of the partnership – one was the products being neglected for Fiat, and other being the lack of spares and servicing. There was a marked fall in the market shares for Fiat from 22587 models in 2009 to around 8801 in till the closing of 2013.
Fiat was fast enough to understand the debacle and decided to separate itself from Tata. After this incident, the company has established almost 108 stand-alone dealerships at several parts of the country. Fiat sold approximately 11980 models in 2014, which was almost an 87 per cent hike than the same period in 2013. Apart from that, the company has also focussed on its marketing strategy and has come up with Fiat Caffes across the country.
Fiat has four different products in the market, as of now, which are Punto Evo hatchback, Classic and Linea sedans and the all-new Avvetura crossover. The Italian brand also retails models from luxury brands like Maserati and Ferrari in the nation. It also is looking forward to bring Jeep, the American brand to the Indian market and also launch Abarth 500 premium shortly.
