Fiat to pump in Rs. 2,000 Cr. in India

[himanshugoswami]

As per the report in this morning's edition of TOI, Fiat is infusing additional investment in India worth Rs. 2,000 cr. thereby doubling their current investment. They have recieved FIBP clearance for this.

Fiat is also entering into a formal JV with equity participation with TATA and the two will jointly develop and produce cars going forward.

[sreenivass]

Originally Posted by himanshugoswami

As per the report in this morning's edition of TOI, Fiat is infusing additional investment in India worth Rs. 2,000 cr. thereby doubling their current investment. They have recieved FIBP clearance for this.

Fiat is also entering into a formal JV with equity participation with TATA and the two will jointly develop and produce cars going forward.

This can only be good news to Fiat lovers and Indian public as it will build confidence w.r.t stability & service of FIAT.

Good move FIAT.

[planet_rocker]

great news. it will definitely help Fiat to pick up sales in India and cator more to "The Fiat Lovers"...

@sreenivass - service is where Fiat needs to highlight and since they have already tied up with TATA -> a very decision on their part!

take care and drive safe!

[GTO]

This is undoubtedly a huge step forward for Fiat in India. They have more money from the Italian parent who had once nearly aborted support. And they have a great partner in Tata.

My only concern is which products. Can the portfolio include hatches that rival the next-gen Indica?

[himanshugoswami]

Originally Posted by GTO

This is undoubtedly a huge step forward for Fiat in India. They have more money from the Italian parent who had once nearly aborted support. And they have a great partner in Tata.

My only concern is which products. Can the portfolio include hatches that rival the next-gen Indica?

Acc. to a close friend who works for TATA motors in Pune, their strategy would be to price the new fiat products against the swift and the getz (for hatches) and against the fiesta/aveo/verna(for sedans) while the Indica will target santro/wagonr etc. and the indigo taking on the accent/flair/esteem.

Since Fiat and TATA are now entering into a JV, the sales of all these cars would shore up teh bottom line of both companies.

Tata in turn is getting access to world class manufacturing and design capabilities, not to mention brilliant engines.

[mtnrajdeep]

But it looks as if the new launches like grande punto will only be in 2008! There will be competitors like honda and toyota by that time in the hatchback market!

[finneyp]

Thatz great news for all Fiat lovers and a good confidence building move for all potential Fiat customers!

Can't wait for the launches of Grande Punto and Fiat Linea!

Cheers Fiat!

[esteem_lover]

fantastic news. guess there would be no more apprehensions in anybody's mind regarding the purchase of a fiat.

[iraghava]

Well it's good news & if they launch the Grande Punto with a decent spec & price I can see what my mother will be driving next

But my concern is that whether they'll be able to sort out their old problems properly this time around. Its true that TATA is a good partner but they itself are no leaders in product quality or customer support. They might be better than Fiat but that's nothing to boast about!!

If they can sort out their Service & Customer support & bring in good, sensible products they might just be able to crack the Indian market this time around. Especially with their class leading Diesel powerplants.

[madbullram]

Thats a yummmmmmmyyyyyyy news...I am looking forward for the Sedans...

[kvish]

Originally Posted by mtnrajdeep

But it looks as if the new launches like grande punto will only be in 2008! There will be competitors like honda and toyota by that time in the hatchback market!

Grande Punto has ripped apart competition from even more manufacturers apart from Honda and Toyota. Just get the pricing right and its gonna be a clear winner...

[WhiteKnight]

Originally Posted by iraghava

But my concern is that whether they'll be able to sort out their old problems properly this time around. Its true that TATA is a good partner but they itself are no leaders in product quality or customer support.

. Wonder where the 2000 Cr s going to get spent. Didn't FIAT already have excess capacity?

[iraghava]

Originally Posted by WhiteKnight

. Wonder where the 2000 Cr s going to get spent. Didn't FIAT already have excess capacity?

Well it seems they wanna build a new Greenfield site for the new products they are launching. Also the Ranjangaon plant is being refurbished after being flooded so they might be planning to use both plants to manufacture the Palio/Petra & the new site for the new models.

[mtnrajdeep]

Originally Posted by kvish

Grande Punto has ripped apart competition from even more manufacturers apart from Honda and Toyota. Just get the pricing right and its gonna be a clear winner...

Alas, if only the Indian market considered only the price. I believe that here, brand name sells, even if there is a slightly inferior product. There are so many people who would be willing to spend more on a car, just because its a Honda or a Toyota.

[WhiteKnight]

Originally Posted by iraghava

Well it seems they wanna build a new Greenfield site for the new products they are launching. Also the Ranjangaon plant is being refurbished after being flooded so they might be planning to use both plants to manufacture the Palio/Petra & the new site for the new models.

Thank you. Somehow I don't digest the strategy. Capacity expansions is a risky affair, especially for FIAT, which cannot claim outright acceptance in Indian market. Looks like they are playing in to TATA's hand

Originally Posted by mtnrajdeep

Alas, if only the Indian market considered only the price. I believe that here, brand name sells, even if there is a slightly inferior product. There are so many people who would be willing to spend more on a car, just because its a Honda or a Toyota.

It is the same in every market. A Superbrand is not born overnight. Companies like Toyota and Honda has been working relentlessly to get to the position they are in now.