Fiat India achieved an 88 percent year-on-year jump in revenues after splitting up with Tata Motors and has worked on to increase its dealer network across the country, while also updating its product range.
Not all breakups result in bad endings, something Fiat India has managed to prove a year after splitting with erstwhile partner Tata Motors. The Italian auto giant’s Indian operations posted robust growth in sales with a year-on-year jump in revenues to the tune of 88 percent at Rs. 3863 crores for the financial year 2014, its first year of full scale operations since the company charted into the Indian market on its own.
In its second innings into the Indian market, Fiat India commenced operations in partnership Tata Motors retailing its range of offerings through the latter’s dealerships. However, the partnership did not really work for the Italian automaker with its products being neglected, while the availability of spares and servicing was also an issue. During the partnership tenure, the automaker saw its sales decline from 22,587 units in 2009 to 8801 units by the end of 2013.
As a result, Fiat India chose to split up with Tata Motors in March, 2013 and retail through its own outlets instead. Since April 2013, the automaker has set-up 108 stand alone dealerships across the country and is aiming to hit the 150 mark by December this year. Fiat sold 11,980 units in the financial year 2014, a whopping 87 percent jump over the same period in 2013. The company has also been focusing on improving its marketing and distribution channel and has also established Fiat Caffes across India.
Fiat currently retails four products through its dealerships including the Linea and Classic sedans, Punto Evo hatchback and the newly launched Avventura crossover. The company also retails its luxury brands like Ferrari and Maserati in the country through private importers and will be bringing the long awaited American brand Jeep to the country through its own channel next year. The automaker is on the brink of launching the Abarth 500 premium hatch in the coming weeks.
Source – Financial Express