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-   -   Fiat India's revenues grow 88% in FY 2014 (https://www.team-bhp.com/forum/indian-car-scene/157847-fiat-indias-revenues-grow-88-fy-2014-a.html)

Italian carmaker Fiat has registered an 88% increase in revenues for FY14 with net sales of Rs. 3,863 crore as against Rs. 2,052.9 crore for FY13. The turnaround comes after the company decided to stop selling its cars through Tata Motors dealerships.

Fiat's sales in India were steadily declining from 22,587 in CY09 to 8,801 in CY13. In FY13, it had managed to move just 6,919 units (March 2013 sales thread). The company started setting up its own sales and service network in April 2013 and in FY14, it sold a significantly higher 11,980 cars (March 2014 sales thread).

While there is no word from Fiat, a report by Financial Express claims that internal sources have revealed that dealers showed more enthusiasm once the company moved away from Tata Motors to market and distribute its cars. This gave more clarity to the dealers in terms of Fiat’s future strategy and led to a rise in volumes.

Fiat has 108 dealerships in the country. The company is aiming to increase this number to 150 by December 2014.

Fiat is also steadily increasing its product portfolio in India. Last month, it launched the Avventura crossover and very soon, it will introduce the 500 Abarth. Additionally, the company is likely to launch the Jeep Wrangler and Cherokee in 2015.

No. Not all dealerships are called FIAT Caffe. Caffe is their premium dealership which also has a Barista Lavazza unit alongwith (Bar as well incase of Bangalore Caffe). The total count of caffe dealerships across the country should be in the range of 4-5 as far as I know.

As expected, it's the engine business that's bringing in the $$$$.

Even if we take a back-of-the-envelope figure of 6.0 lakhs / cars invoice value (mix of Puntos & Lineas...again, rough figure), the turnover from selling cars is merely 700 crore (780 crore @ 6.5 lakh / car invoice value). That's less than 20% of their turnover.

Whatever way you look at it, ~3000 crores of that revenue is coming from engines (majorly), engine licencing fee (mainly Maruti), spare parts (small component) and other businesses.

Fiat India is an engine company first, then a car company. Honestly, it's a great USP to have. No other manufacturer can boast of 3,000 crores of revenue from engines! Of course, the biggest challenge is if Maruti develops their own diesel and stops using Fiat's motors. The Italians are really in trouble then. It will happen sooner or later.

Something doesn't add up. Even if each of the 12000 cars were sold at an average cost of Rs.7 lakhs, the total revenue is only Rs.840 crores. The rest of almost Rs.3000 crores is from engine sales to Maruti/ Tata?

Edit: ^^^^^^^ GTO beat me to it with a more realistic estimate..

The engine deal got renewed for another three years, earlier this year. So, Fiat India still has some time to improve their product portfolio and perception about service. Along with the revenue from engines, there's also additional revenue by plant sharing with Tata. I am sure they must be making some money out of every Zest that rolls out of Ranjangaon plant.

This engine deal is the reason why I always want Fiat to focus on niche market of enthusiasts and make good driver oriented cars. Leave the mass market (and its associated mess) for your clients, and focus on supplying great engines to them and great driver oriented cars to your customers.

All the best, Fiat!

the sad thing really is, that the really fun-to-drive cars, VW and Fiat, also make their own engines as a bonus. But both are really pi$$ poor car companies when it comes to after-sales and customer satisfaction.

Fiat needs to really diversify it's product portfolio in India within the time frame given for Maruti engine deal extension. If they do not manage to pull it off, then it is bye-bye Fiat within 4 years at max.

Even if MSIL deal ends after a few years, MSIL will still be using AMT gear boxes which are made by Magneti Marelli, a Fiat company! So, somewhere or other, Fiat is changing the way India drives!

Actually, this could be Fiat's biggest catchline! We help India drive!

That 3 years can be well utilized. But when it comes to FIAT, another facelift/engine change of the existing line up is highly unlikely based on the history of the FIAT in India.

No other car maker has the liberty to play around with its products with the engine business bringing most of the revenue, like FIAT. But that liberty is wasted at the slow moving company. I agree that it is taking baby steps, but that wont be enough.

But yes, the word revenue paired with FIAT sounds really encouraging to this humble FIAT'ian.

Good news to see Fiat improving its base. IMO the TATA showrooms were least interested to sell their own cars, forget selling Fiats. After having multiple disappointing experiences with various showrooms, I guess things will get better.

Why is it that their revenues increased after the breakup? The sales of cars haven't risen much. And I believe whatever came from the engines was exclusively for Fiat. Isn't it so? I can only relate the increase in revenue to the huge numbers Maruti is dishing out. Now with Ciaz adding up to the demand, Fiat bosses would be happy I think.

On similar lines, I guess Fiat should get the 1.6l engine as soon as possible. At least then, we can hope that MSILs engine options will be improved. If not, there might be a time when everything from the Alto to the S-cross will get the 1.3L engine(exaggerated purposely)

In that case break-up with Tata hasn't got anything to do with revenue. May be Fiat wants to showcase that they made the money by selling their cars.

Fiat still has a long way to go, they are completely relying on Multijet engine to move their product line up, where as the superb Tjet has been getting step motherly treatment.

Punto with that lethargic 1.2 engine isn't going to cut the deal against the superb Kseries from Maruti, and the Kappa series from Hyundai.

It is 2. One at Bangalore and the other one at Delhi.

There is one in Poona too in Koregaon Park, so 3 as of now.

The irony is that though Fiat is indeed an engine company first in India, it will have to make better engines to make it as a car company in India.

Just imagine, the 1.4 L Fire petrol Punto Evo Emotion is just 18,000 bucks cheaper than the 75 PS diesel emotion, ex-showroom. One may even consider paying that much for the T-jet, but paying that for the mediocre performing 1.4 L Evo is certainly out of question.

And we all know that the 1.3 L multijet is underpowered for the relatively heavier Fiat cars. So both the petrol and diesel have to improve significantly.

I think three years is little time and Fiat has to hurry, especially given its pace. In India, I am not sure if the Luxury brands are going to give them the revenues and the numbers, though they may contribute generously to their bottom line, if successful. The real deal therefore would be the sub 15 lakh segment.

In the sub 15 lakh segment, Fiat has everything important in their kitty (majorly: ride, handling, build quality, and looks) except two aspects:
(1) as mentioned earlier good, powerful, efficient petrol and diesel engines which do not make their cars either too lethargic or too expensive. The question is are they working on these fronts?
(2) and a sea change in the perception people have about their ASS. They are working on this second aspect; lets see how far they go.

I feel they just need to stop marketing under the "FIAT" marquee and launch their new cars under Dodge and Chrysler. Fiat has such a bad reputation thanks to their history with PAL and later the fiasco with Tata that their name is not salvageable. I wonder what stops them.