Tata to double Fiat's sales

himanshugoswami · 9th April 2007, 16:36

The Hindu News Update Service

I think this can safely sum up Fiat's situation in India- when the company aims at monthly sales volumes of 250 units per month!

__________________________________________________ ______________

Tata Motors targets to double Fiat sales this year

Ludhiana, April. 7 (PTI): Tata Motors, the country's top automobile firm, expects to sell over 3,000 Fiat branded cars in India during the current fiscal.
"In the last fiscal, we sold 1,500 Fiat branded cars and this year we hope to sell more than 3,000 cars through our distribution network," Tata Motors, senior manager (passenger car unit), Mudit Gupta said.
Gupta was speaking to reporters after launching the Fiat Palio Stile here.
Tata Motors distributes Fiat cars in India and also has a joint venture with the Italian company for manufacturing passenger cars and engines for Indian and overseas markets. When asked about any adverse impact on sale of cars due to rising lending rates in view of RBI's monetary measures for containing inflation, he said the company had not observed any impact on sales volume so far.

theMAG · 9th April 2007, 16:39

Warm news indeed - hope they succeed; this not being a case of doubling a car's worth by filling its tank

amtak · 9th April 2007, 16:43

That is indeed a good news...when I had last visited the TATA showroom, the Fiat sales guy there told me that he sells abt 9 cars a month and expects it to go to 25 per month now. So let us assume that all the TATA dealerships sell 25 units of fiat a month, the calculation would be 25*63 (dealerships appx.) in major metros so it is about 1575. Now if TATA has 100 dealers the amount would be 2500 units. Fiat is bound to gain.

All the best: Va Italia Va!

himanshugoswami · 9th April 2007, 16:46

Quote:

Originally Posted by amtak

That is indeed a good news...when I had last visited the TATA showroom, the Fiat sales guy there told me that he sells abt 9 cars a month and expects it to go to 25 per month now. So let us assume that all the TATA dealerships sell 25 units of fiat a month, the calculation would be 25*63 (dealerships appx.) in major metros so it is about 1575. Now if TATA has 100 dealers the amount would be 2500 units. Fiat is bound to gain.

All the best: Va Italia Va!

You are talking of 2500 units a month buddy, while tata motors is talking of 3000 units this fiscal! that works out to 250 units a month!

amtak · 9th April 2007, 16:51

Quote:

Originally Posted by himanshugoswami

You are talking of 2500 units a month buddy, while tata motors is talking of 3000 units this fiscal! that works out to 250 units a month!

I just quoted what the TATA dealer had told me...also, I already mentioned lets just ASSUME! Fiat is serious and TATA is trying to help them...2500 from all over india should't be that difficult now that its launched the new fuel efficient Palio...oops stile.

directinjection · 9th April 2007, 17:35

The abysmal sales target (3000 cars per annum) makes it amply clear as to who's occupying the driver's seat in this alliance. It's Tata all the way.

When this alliance was announced I used to wonder if it'll survive, considering the mutually competitive rather than complementary nature of their products. However, it is now clear that there's no threat from FIAT to any of the Tata cars, notwithstanding the fact that FIAT cars have better quality.

It's also rumored that Petra is being phased out and that should also make Tata happy.

When the top brass of Tata and FIAT meets next, this is probably what Mr Tata would tell the guys from FIAT: Look here, you guys were on the verge of closing down your Indian business, until we came in and doubled your sales. Now let's have free copies of the JTD 1.3 technical drawings in return! We require it for the new Indica!

cartech · 9th April 2007, 17:56

What a state FIAT has come to! Proudly saying that fiscal sale target is 3000!! Tatas will be the only beneficiary in this deal, Punto or no Punto!
Do you folks think that both Palio and Indica will come with 1.3JTD? How Palio 1.3JTD will sell against Indica 1.3 JTD with substantial less price?

As it is Xeta 1.2 will be competing against Palio 1.1 with less price tag and more power. Aam janta does not give damn about refinement+build quality etc.

I hope I am wrong for FIATs sake.

tushky · 9th April 2007, 17:58

Fiat Grande Punto and New tata Indica will come with 1.3 JTD.

CrAzY dRiVeR · 9th April 2007, 19:37

Quote:

Originally Posted by tushky

Fiat Grande Punto and New tata Indica will come with 1.3 JTD.

Spied on any test-cars???

Please share the pics if you have caught anything...

tushky · 9th April 2007, 20:19

hmm, i got a news that one guy spotted Fabia in Banglore.

MaserQ · 9th April 2007, 21:17

Lets be realistic. The new Palio is not going to set the sales chart on fire. That figure of 3000 should be revised once the Punto is released. Better to start with low expectations, address issues that have plagued them in the past and then introduce fresh products like Punto/Linea.

roms · 9th April 2007, 21:30

Agreed with MaserQ. It may sound like a horrible sales target.But its as realistic as it can get for Fiat.Infact,I think it will be good if they can manage even 3000 units this year.There are a lot of products lined up for the next couple of years from Fiat.But until then, selling Palios is just going to be brand re-building exercise.It will never sell like hot cakes.

sreenivass · 9th April 2007, 21:43

Even with a modest target if the brand image can be rebuilt by proper support and service with spares, I think they can compete with other folks over a few years time. But it has to be a sustained image building period, they can not expect sell tens of thousands overnight.

1100D · 9th April 2007, 21:44

The sales target may seem abysmal but given the fact that the actual sales of Fiat cars has been much lower than that and Tata-Fiat's real thing being the Grand Punto or a possible Indica 1.3 JTD launch, this target is quite logical for this stop gap arrangement. In anycase the Stile makeover is to inbibe a change of face to the product that had not had anyfacelifts in the last 5 years. Lets hope it works.

roms · 9th April 2007, 21:51

Remember,They've just got a new plant running which is capable of manufacturing upto a Lakh units and transmissions a year.So rest assured, there is something really big cooking up in there.

9th April 2007, 16:36	#1
himanshugoswami Senior - BHPian Join Date: Oct 2004 Location: !!!! Posts: 2,303 Thanked: 2,619 Times	Tata to double Fiat's sales The Hindu News Update Service I think this can safely sum up Fiat's situation in India- when the company aims at monthly sales volumes of 250 units per month! __________________________________________________ ______________ Tata Motors targets to double Fiat sales this year Ludhiana, April. 7 (PTI): Tata Motors, the country's top automobile firm, expects to sell over 3,000 Fiat branded cars in India during the current fiscal. "In the last fiscal, we sold 1,500 Fiat branded cars and this year we hope to sell more than 3,000 cars through our distribution network," Tata Motors, senior manager (passenger car unit), Mudit Gupta said. Gupta was speaking to reporters after launching the Fiat Palio Stile here. Tata Motors distributes Fiat cars in India and also has a joint venture with the Italian company for manufacturing passenger cars and engines for Indian and overseas markets. When asked about any adverse impact on sale of cars due to rising lending rates in view of RBI's monetary measures for containing inflation, he said the company had not observed any impact on sales volume so far. Last edited by Aditya : 9th April 2007 at 16:42.
	() Thanks

9th April 2007, 16:39	#2
theMAG Distinguished - BHPian Join Date: May 2006 Location: Avon, CT Posts: 7,217 Thanked: 1,807 Times View My Garage	Warm news indeed - hope they succeed; this not being a case of doubling a car's worth by filling its tank
	() Thanks

9th April 2007, 16:43	#3
amtak Senior - BHPian Join Date: Oct 2006 Location: Mumbai - The city of Sea Link!!! Posts: 2,915 Thanked: 899 Times View My Garage	That is indeed a good news...when I had last visited the TATA showroom, the Fiat sales guy there told me that he sells abt 9 cars a month and expects it to go to 25 per month now. So let us assume that all the TATA dealerships sell 25 units of fiat a month, the calculation would be 25*63 (dealerships appx.) in major metros so it is about 1575. Now if TATA has 100 dealers the amount would be 2500 units. Fiat is bound to gain. All the best: Va Italia Va!
	() Thanks

9th April 2007, 17:35	#6
directinjection Senior - BHPian Join Date: Oct 2005 Location: Faridabad/Delhi Posts: 1,704 Thanked: 780 Times	The abysmal sales target (3000 cars per annum) makes it amply clear as to who's occupying the driver's seat in this alliance. It's Tata all the way. When this alliance was announced I used to wonder if it'll survive, considering the mutually competitive rather than complementary nature of their products. However, it is now clear that there's no threat from FIAT to any of the Tata cars, notwithstanding the fact that FIAT cars have better quality. It's also rumored that Petra is being phased out and that should also make Tata happy. When the top brass of Tata and FIAT meets next, this is probably what Mr Tata would tell the guys from FIAT: Look here, you guys were on the verge of closing down your Indian business, until we came in and doubled your sales. Now let's have free copies of the JTD 1.3 technical drawings in return! We require it for the new Indica!
	() Thanks

9th April 2007, 17:56	#7
cartech BHPian Join Date: Jan 2007 Location: Mumbai Posts: 198 Thanked: Once	What a state FIAT has come to! Proudly saying that fiscal sale target is 3000!! Tatas will be the only beneficiary in this deal, Punto or no Punto! Do you folks think that both Palio and Indica will come with 1.3JTD? How Palio 1.3JTD will sell against Indica 1.3 JTD with substantial less price? As it is Xeta 1.2 will be competing against Palio 1.1 with less price tag and more power. Aam janta does not give damn about refinement+build quality etc. I hope I am wrong for FIATs sake.
	() Thanks

9th April 2007, 17:58	#8
tushky Senior - BHPian Join Date: Feb 2007 Location: Pune Posts: 1,232 Thanked: 2,701 Times View My Garage	Fiat Grande Punto and New tata Indica will come with 1.3 JTD.
	() Thanks

9th April 2007, 20:19	#10
tushky Senior - BHPian Join Date: Feb 2007 Location: Pune Posts: 1,232 Thanked: 2,701 Times View My Garage	hmm, i got a news that one guy spotted Fabia in Banglore.
	() Thanks

9th April 2007, 21:17	#11
MaserQ Senior - BHPian Join Date: Oct 2006 Location: Bangalore Posts: 1,196 Thanked: 166 Times	Lets be realistic. The new Palio is not going to set the sales chart on fire. That figure of 3000 should be revised once the Punto is released. Better to start with low expectations, address issues that have plagued them in the past and then introduce fresh products like Punto/Linea.
	() Thanks

9th April 2007, 21:30	#12
roms BHPian Join Date: Jan 2006 Location: Mumbai Posts: 641 Thanked: 26 Times	Agreed with MaserQ. It may sound like a horrible sales target.But its as realistic as it can get for Fiat.Infact,I think it will be good if they can manage even 3000 units this year.There are a lot of products lined up for the next couple of years from Fiat.But until then, selling Palios is just going to be brand re-building exercise.It will never sell like hot cakes.
	() Thanks

9th April 2007, 21:43	#13
sreenivass BHPian Join Date: Oct 2006 Location: Bangalore India Posts: 932 Thanked: 44 Times View My Garage	Even with a modest target if the brand image can be rebuilt by proper support and service with spares, I think they can compete with other folks over a few years time. But it has to be a sustained image building period, they can not expect sell tens of thousands overnight.
	() Thanks

9th April 2007, 21:44	#14
1100D Senior - BHPian Join Date: Jun 2006 Location: Calcutta Posts: 4,390 Thanked: 4,096 Times View My Garage	The sales target may seem abysmal but given the fact that the actual sales of Fiat cars has been much lower than that and Tata-Fiat's real thing being the Grand Punto or a possible Indica 1.3 JTD launch, this target is quite logical for this stop gap arrangement. In anycase the Stile makeover is to inbibe a change of face to the product that had not had anyfacelifts in the last 5 years. Lets hope it works.
	() Thanks

9th April 2007, 21:51	#15
roms BHPian Join Date: Jan 2006 Location: Mumbai Posts: 641 Thanked: 26 Times	Remember,They've just got a new plant running which is capable of manufacturing upto a Lakh units and transmissions a year.So rest assured, there is something really big cooking up in there.
	() Thanks