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Old 12th April 2007, 17:08   #1
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Default What is the logic behind Fiat stopping petra?

It's official now that the petra has been stopped In india ,however fiat india would continue production of the adventure.

I do not get the logic behind this decision.When an estate version of the car is being made why not the sedan version.I think the sedan fared better than the estate or was it the other way round.The linea would come only by mid 2008 so fiat could have easily sold the sedan version of the palio till then.

Or is it big brother tata ensuring that it does not get an additional headache[competitor] for the indigo.As far as the indica ,tata does not feel threatened so it seems.

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Old 12th April 2007, 17:14   #2
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I guess they want to focus their energies on launching the much awaited sedan - Fiat Linea!
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Old 12th April 2007, 17:36   #3
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Quote:
Originally Posted by rahul_intlad View Post

Or is it big brother tata ensuring that it does not get an additional headache[competitor] for the indigo.As far as the indica tata does not feel threatened so it seems.
I think you've answered the question yourself.

Tata is simply armtwisting FIAT India which has become so weak (as a result of its own mismanagement) that it can do nothing about it.

The product profile of Tata and Fiat India being mutually competitive rather than complementary (as should be the case in a JV), conflict situations such as this one are bound to arise and obviously, the stronger party will prevail.

I even doubt if Fiat will offer JTD 1.3 in the Palio since doing so is bound to hurt Indica. If it offers, the price difference vis a vis Indica will be kept so high as to make Palio unattractive.

Have you noticed that the base version of the new Palio 1.1 carries an ex-showroom price of 3.49L (inspite of excise duty concession) whereas the top end model of Indica Xeta 1.4 (in spite of not availing excise concession) carries an ex-showroom price of, guess what, 3.49L! Coincidence? I don't think so.

It is not for nothing that Tata-Fiat have set the 2007-08 sales target for FIAT cars at 3000 units!
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Old 12th April 2007, 17:39   #4
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Current Palio is just stop gap arrangement and sort of image building that Fiat exists.( Did anyone watched new palio Ad. ). There is no Palio D version it will be out only with new engine. Fiat does not expects that they will be able to sell petrol sedan ( specially with brand fiat + price ). They putting major energies in new vehicles/engines.
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Old 12th April 2007, 18:01   #5
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I was waiting for someone to raise this question. I feel that they might launch a facelifted Petra because otherwsie they will have a vacuum in the sedan section. Frankly speaking, I found Petra to be the most VFM car in the 1600 cc section and was contemplating to buy one. But now I guess I will have to wait as both Baleno and Petra are out.
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Old 12th April 2007, 18:12   #6
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Simple logic, Fiat product should not compete with Tata's product. If you see the price of Petra is competes with Tata's Indigo. And I am damn sure Palio will not have 1.3 multijet. They will launch Punto 1.3 multijet with 98 bhp engine and price tag will be at higher side.
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Old 12th April 2007, 22:09   #7
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The Petra although undoubtedly one of the best cars in the segment was never a strong seller. And whatever monikering differences they have done, was still unable to put the sales around. Palio on the other hand had been a hot seller sometime and still command better respect amongst its own class than Petra did in its own. Hence just the numbers game, Palio continued in the Tata-Fiat alliance despite the obvious competition from its own stablemate the Indica (with a slight market repositioning) , but Petra the alliance probably thought was not worth reviving. They would rather go all out on the Linea and Grand Punto.

However, hurts me to see the Petra go.
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Old 12th April 2007, 22:39   #8
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Maybe because Petra simply never sold well to justify its existance.

Another theory is that it might compete with Linea.
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Old 12th April 2007, 23:07   #9
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Quote:
Originally Posted by finneyp View Post
I guess they want to focus their energies on launching the much awaited sedan - Fiat Linea!
Better, FIAT focus on the LINEA. The PETRA has poor image and the company can do nothing to sell this product in the market. so, i feel FIAT has taken the right decision.
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Old 13th April 2007, 00:24   #10
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Good sense to discontinue something which never sold. Anyways discontinued or not it will not make any difference as it was hardly selling any numbers.
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Old 13th April 2007, 01:07   #11
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Yes, our perceptions do not matter (as we are a minority). It is the volumes that these manufacturers are after. Yes, petra was a terrific car, so was the sienna. let us hope they bring out a better car now.
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Old 13th April 2007, 09:51   #12
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My few cents on this:

Petra: Is suffered only due to poor FIAT brand image. Otherwise its a great value for money car in its segment. Now after going for a JV with TATA, FIAT had no other option but to not compete with TATA products. How can TATA allow FIAT sell Petra standing besides Indigo??

Now Palio was put into premium segment before 1.1 launched and TATA was putting Indica below premium hatchback (Petrol) market so no competition.. Now As FIAT has launched 1.1L and now it will compete with WagonR, Santro, Estilo.. I seriously think TATA should discontinue Xeta and concentrate on Palio 1.1L in that band.

About Indica diesel, it will anytime be cheaper than Punto and thus can sell in large number specially in cab business.. Now to make way for Punto with multijet, they will slot it against Swift, Getz and U-VA.

Now about Linea, This will be marketed as a premium sedan and will compete with Fiesta and City. So again due to no TATA existence in this range, they are happy.. and will sell Indigo in the range of Logan, Ikon etc...

So TATA and FIAT will compliment each other rather than competing in the same showroom.. FIAT will get financial aid by TATA for their JV + service network.. TATA will get Ranjangaon plan + technology.. TATA will now hardly have to put RnD money for their every 2 months all new products.. Instead they will be happy with world class tech by FIAT.. In future I believe all FIAT world tech will enter in India through TATA..

These are my personal views.. comments are welcome..

Cheers
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Old 13th April 2007, 10:07   #13
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Quote:
Originally Posted by rahul_intlad View Post
I do not get the logic behind this decision.When an estate version of the car is being made why not the sedan version.
Welcome on board!!! There is a large number of people who cannot find logic in any of FIAT's decisions.

So, don't scratch your head. Most probably there is no logic behind this decision too .
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Old 13th April 2007, 10:20   #14
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I personally think that TATA wants to reduce competiton ,

Its preparing for LOGAN thats the reason they have come up with cheaper version of Indigo called V series if i am not mistaken .

TATA is just going to suck evrything out of FIAT ex R&D, international image for thier indicabs .....

I really wonder wht TATA is focussing on selling only 3000 cars !!

I thnik palio 1.1 stile pushed with good marketing and Ads it can definetly sell more than 3000.

Time will tell who is the winner out of this JV .....
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Old 13th April 2007, 10:37   #15
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Personally, I have seen more Adventures than Petras. Maybe the numbers did it.
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