Fiat is nothing short to a well familiar face in the Indian automobile industry. Since the past, Fiats are the only few options of fairly good family cars.
The company entered India as early as in 1950s with a joint venture with the Mumbai-based Premier Automobiles (PAL). After an abortive launch of the popular hatch Uno in 1996 when its CKD joint partner PAL delivered only 617 cars of the 30,000 ordered,
Fiat started its venture as a 50-50 Industrial Joint Venture with the Tata Motors in January 1997 (definitive agreement was signed in 2007). And now the Italian car maker has decided to take over management control of commercial and distribution activities of its own branded cars in India. Accordingly, the management control will be handed over to a separate Fiat owned company. This is a good sign and the company desperately needs to reconsider its approach to the Indian market.
To be frank, Fiat has never been so serious and zealous about India. The brand image and credibility isn't so great, thanks to its poor service network and customer's satisfaction. That was so evident when a chunk of bookings for the Uno hatch were cancelled by the customers suddenly out of apprehension in 1997. The cars like the Siena saloon, Siena weekend and Palio experienced mediocre response, in spite of being high-tech vehicles with class-leading quality and performance.
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| Fiat Siena Weekend (2000-2004) |
I still remember, it was only the Fiat Automobiles in the whole Indian market in the late 1990s, which offered safety features such as ABS (Anti-locking Brake System) and Airbags in its Siena models and no other besides Mercedes. Even the costlier and reputed classmates Opel Astra and the Mitsubishi Lancer did not have any of those options. The 1.6 petrol motor that powered the Siena Weekend was the best ever and topped the performance figures, just like the T-Jet petrols found in the present-day Punto and Linea. How to forget the 1.3 Multi-Jet diesel engines, that is found in almost seven cars. We all know how capable they are.
It was only after 2007 Fiat gained momentum, when its refreshed models found place in the Tata showrooms. The wide Tata network was a relief for the Fiat owners, and healed the brand's bad reputation, not much though. The sales of the Linea and the Punto are uninspiring in the recent years, considering the sales figures of its counterparts. The service network is still seen as a liability to the company. It is apparently clear that the joint partnerships are not effectively working for the Fiat in India. So, the company should primarily sought out a new strategy for its business in India, considering its potential. In this regard, the company's decision to end the partnership and have direct control is a smiling fact.
But the company has to address an another important issue. Fiat desperately needs to wider model-range and an expanded fleet of offerings to meet the market requirements and build a stronger brand image. The Bravo is a much awaited one, but the updated Palio in the Brazilian market can also be a good choice to start with. The Brazilian Siena saloon has the potential to make the competition more stiffer in the Dzire - Sunny class. Fiat can also try to answer the growing MPV-mania in our market.
As a proud Fiat owner, I always feel the passion behind them, with which they are crafted. Fiat cars are technologically sound and best. The company needs to put efforts to bring back the old glory and reputation, that it possessed decades back. It has to realise its true potential and reconsider its approach towards business in India.
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