Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 23rd April 2009, 13:34   #16
BHPian
 
shineshine's Avatar
 
Join Date: Jun 2006
Location: Arkansas,US
Posts: 277
Thanked: 36 Times
Default

As per Business Standard,

Quote:
Auto major Fiat today said it has increased the localisation of components in its vehicles to 65% from the earlier 55%.

"All our plans are falling in place and we are confident of achieving 86% localisation on the Linea by the end of this calendar year," Fiat President and CEO Rajeev Kapoor said in a release here. "By the first quarter of 2010, the Linea will be 91% localised," he said.

The localisation plan is being carried out to save on import duties, which are passed on to the customer, the leading carmaker said.
So its likely the localization will be benefiting more to GP rather than Linea
shineshine is offline   Reply With Quote
Old 23rd April 2009, 15:06   #17
Senior - BHPian
 
Join Date: Apr 2007
Location: noida
Posts: 1,049
Thanked: 297 Times
Default

Fiat has taken a lesson from the Maruti practice of "invitation prices". A reduction in cost need not mean hat the prices come down. It means that the company makes more money
rajneeesh is offline   Reply With Quote
Old 23rd April 2009, 17:04   #18
BHPian
 
sharma_sanjeevi's Avatar
 
Join Date: May 2008
Location: Mumbai
Posts: 570
Thanked: 62 Times
Default

Quote:
Originally Posted by hillram View Post
This is great news.I wonder Grande Punto will be launched at a cheaper price.
I also wish, that GP should be launched at a cheaper price, considering the localisation factor & sharing of parts bin between Linea & GP.

Keeping the fingures crossed for the launch & specially for price factor
sharma_sanjeevi is offline   Reply With Quote
Old 23rd April 2009, 17:13   #19
Senior - BHPian
 
amtak's Avatar
 
Join Date: Oct 2006
Location: Mumbai - The city of Sea Link!!!
Posts: 2,782
Thanked: 342 Times
Default

The million $$$ question is when is the GP coming? Ritz arriving next month (confirmed to me by a sales rep.) and the Jazz in june.
amtak is offline   Reply With Quote
Old 23rd April 2009, 17:15   #20
BHPian
 
sharma_sanjeevi's Avatar
 
Join Date: May 2008
Location: Mumbai
Posts: 570
Thanked: 62 Times
Default

Quote:
Originally Posted by amtak View Post
The million $$$ question is when is the GP coming? Ritz arriving next month (confirmed to me by a sales rep.) and the Jazz in june.
I visited TATA-FIAT showroom, enquiring about the GP, the sales representative told me that "Sir, June ya July mein aana chahiye", he had no information till now.

But lets hope it arrvies till June End.
sharma_sanjeevi is offline   Reply With Quote
Old 23rd April 2009, 17:24   #21
Senior - BHPian
 
MileCruncher's Avatar
 
Join Date: Jan 2009
Location: Mumbai
Posts: 3,992
Thanked: 356 Times
Default

Way to go for Fiat! Only hope that the quality of parts don't come down.
MileCruncher is offline   Reply With Quote
Old 23rd April 2009, 17:27   #22
Senior - BHPian
 
narayan's Avatar
 
Join Date: Aug 2006
Location: Singapore
Posts: 2,768
Thanked: 1,162 Times
Default

Is the Ritz same size as GP/JAZZ ? i thot it was much smaller.

anyway coming to the topic - localisation is always good from the total cost of ownership point of view. But hopefully the cars are well built that one would not need to worry about spares in the first place
narayan is offline   Reply With Quote
Old 23rd April 2009, 17:35   #23
Senior - BHPian
 
Join Date: Mar 2005
Location: N.A
Posts: 6,834
Thanked: 1,503 Times
Default

Quote:
Originally Posted by JayD View Post
But why the price increase after this move?? Shouldn't the opposite happen??
My question exactly - they announce an increase in localization of parts, followed immediately by a price hike.

dont you find this really strange?
Steeroid is offline   Reply With Quote
Old 23rd April 2009, 17:53   #24
Senior - BHPian
 
MileCruncher's Avatar
 
Join Date: Jan 2009
Location: Mumbai
Posts: 3,992
Thanked: 356 Times
Default

Quote:
Originally Posted by Steeroid View Post
My question exactly - they announce an increase in localization of parts, followed immediately by a price hike.

dont you find this really strange?
Well as much as my knowledge of automotive production goes, whenever a company gets a new vendor for a part, company has to guarantee offtake from the vendor a certain number for the initial 3-4 years based on which the vendor will invest in tooling. Lot of times automobile manufacturers (I don't know why we call them that as they are mainly assemblers) even have to pay the first 6-12 months offtake in advance which is a drain on the budget of the company, so they quitely increase the price by a few thousands. Later on when the supplier becomes permanent and the quality is assured and numbers also stabilised, prices are always rolled back. Product LifeCycle Management of the car also plays a crucial role in the extent of price rise in the product.

If there is any body from Vendor Development or Purchase in automotive sector please correct me, If I'm wrong.
MileCruncher is offline   Reply With Quote
Old 23rd April 2009, 18:50   #25
BHPian
 
Join Date: Feb 2009
Location: Mumbai
Posts: 136
Thanked: 6 Times
Default

Quote:
Originally Posted by Mr_Bean View Post
With Tata being right along with Fiat, I am quite worried about the quality of plastics & other parts used in the car. This will have its say in the long run.

I happened to test drive the demo car of the indica vista diesel & the quality of plastics were pretty bad. gearbox is sourced from fiat, can someone comment. Is the car little sluggish to start with?
Tata is no where in the making of Fiat cars. Indica Vista is made in Fiats Ranjangaon plant but Tata is not at all involved in design n development of any Fiat product.

And I dont think Vista (diesel) is sluggish at all. I have test driven it and i dont feel so at all.
Prash is offline   Reply With Quote
Old 23rd April 2009, 19:29   #26
BHPian
 
FastLove's Avatar
 
Join Date: Mar 2006
Location: MUMBAI
Posts: 416
Thanked: 99 Times
Default

Very Good and Important news for all especially FIAT owners ! i happen to be a new member for them Way to go FIAT !
FastLove is offline   Reply With Quote
Old 24th April 2009, 01:21   #27
BHPian
 
superbhikari's Avatar
 
Join Date: Jul 2008
Location: Muzaffarnagar
Posts: 411
Thanked: 143 Times
Default

Grand Punto launch in second week of May, Price - Petrol starts at 4L and diesel at 5L. Source - Zee News
superbhikari is offline   Reply With Quote
Old 24th April 2009, 08:03   #28
BHPian
 
siedo's Avatar
 
Join Date: Dec 2008
Location: Pune
Posts: 123
Thanked: 11 Times
Default

May be not the right time for price reduction in product life cycle (soon after launch).
But increase is also not justified.
siedo is offline   Reply With Quote
Old 24th April 2009, 13:10   #29
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,713
Thanked: 89,079 Times
Default

A higher level of localisation indicates the company's confidence in the market viability of its product, as well as it's commitment to the market. Step in the right direction, Fiat.

Linea owners should also benefit from lowered spare part prices in that case. My only worry is that the quality shouldn't suffer.
GTO is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
BMW increases level of localisation at Chennai plant to 50% Aditya The Indian Car Scene 14 10th July 2015 16:54
Horns: About excessive usage & localisation in India mints21 The International Automotive Scene 10 21st January 2014 23:06
Mercedes Benz India to focus on increasing localisation & bring smaller 2.0 Diesels RavenAvi The Indian Car Scene 15 23rd August 2011 16:30
India steadily increases its lead in road fatalities psp62in Street Experiences 3 11th June 2010 14:42


All times are GMT +5.5. The time now is 04:39.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks