Tata to become entry level brand-Fiat premium

rahul_intlad · 28th May 2007, 13:20

The tata-fiat partnership's is looking like moving on to the next stage,

Quote:

Tata Motors, which has recently formed a joint venture with Fiat Auto, has decided to use the Tata brand name for entry-level cars. Fiat will be the chosen brand name for the middle-to-premium-end of each segment.

“In the times to come, Fiat will look at the premium- and high-end segments and Tata will be at the entry level,” Ravi Kant, managing director, Tata Motors, told FE.

We already discussed this on team-bhp how the image of tata was a put-off for many buyers[premium segment] so this is a step forward.

Source:
‘Tata’ name for only entry level cars

typeOnegative · 28th May 2007, 13:29

Hmmmm. So things are moving as predicted/expected by many here. Congrats team-BHP.

DCEite · 28th May 2007, 13:32

Quote:

Originally Posted by rahul_intlad

We already discussed this on team-bhp how the image of tata was a put-off for many buyers[premium segment] so this is a step forward.
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hmm.. but do you think using Fiat brand name for will do any better? Think about it.. most people would rather prefer an Tata Indigo LX, rather than a Fiat Indigo ! Such is the sorry state of Fiat in India, even the brand name itself carries negative perception among the general public.

amit · 28th May 2007, 13:38

Fiat and Tata are out to commit suicide. All the best to both of them!

Have they done any survey regarding how people percieve the Fiat brand in India and if post tie-up there has been any improvement in Fiat's brand image? Also, if they want to sell Fiat badged cars as premium ones, then it's high time they starting training their dealers on dealing with premium customers. Currently, the staff at their dealerships aren't fit to cater to even the Indica and Palio customers.

I hope this isn't some advance information/warning regarding the premium pricing of the Grande Punto and Linea cars.

GeekSrik · 28th May 2007, 13:45

So what if fiat linea is sold as tata linea as long as there is good support and service. and the car itself will speak anyways! atleast the two partners who were arch rivals at one point in time, have decided to go ahead to see where this alliance can reach upto. i think only time will tell how profitable this can get! i am happy as long as its not the other way round - tata enters premium and fiat entry level

DCEite · 28th May 2007, 13:47

What about the Safari 4x4, Indigo XL.
Will it be now called Fiat Safari 4x4? And Fiat Indigo XL ?

typeOnegative · 28th May 2007, 13:48

Quote:

Originally Posted by DCEite

What about the Safari 4x4, Indigo XL.
Will it be now called Fiat Safari 4x4? And Fiat Indigo XL ?

No no .... you got that wrong. Those are entry level premium cars. See 'entry level' first. Ergo Tata Safari and Tata Indigo.

Steeroid · 28th May 2007, 13:49

Quote:

Originally Posted by DCEite

Will it be now called Fiat Safari 4x4?

Do we have a hangman smiley? The "issues" I initially had with my Safari are not a patch on the trouble that my Alfa Romeo gave me - I'd much rather have the 'T' on my grille!

hrag · 28th May 2007, 13:51

Its a subtle message from Tata.

Tata: Affordable cars
FIAT: Overpriced passion

DCEite · 28th May 2007, 13:52

Quote:

No no .... you got that wrong. Those are entry level premium cars. See 'entry level' first. Ergo Tata Safari and Tata Indigo.

"Fiat will be the chosen brand name for the middle-to-premium-end of each segment."

So which TATA cars fits in the above statement?

devarshi84 · 28th May 2007, 13:52

There's no doubt that fiat palio stile is better built than Indica.

Though not completely impossible, it would be a tough road for Tata to make fiat a premium brand competing with the likes of Honda, skoda, toyota and mitsubishi.

Linea is a good car and may actually give a good boost IF tata is really serious on spending some good marketing bucks.

why its possible

Fiat fans are FIAT FANS
Tata has a good network money to spend being the 3rd biggest player.
Atachment and history of the brand (slightly scarred but still)
Fiat has good technology
Fiat cars are good looking
Its a European brand (not really a luxury brand though)

WHy its tough

Fiat wows
SSS problems
Japanese have grown giants and will certainly take effective steps

srishiva · 28th May 2007, 13:55

Looks like TATA have decided that they can't make higher end cars (at least as far as build is concerned) and Fiat wants to justify the numbers.
TATA is getting sucked into this when they are doing well and can think ahead by getting better manufacturing.

Zappo · 28th May 2007, 14:07

There is another possible aspect to this development. Tatas are going to look at the entry level. But they are not limited to developing entry level cars only. Entry level is only in terms of pricing. Already they have put in a Dicor engine in the Indigo. They now have an LWB Indigo with a 101ps engine. Now if they go ahead with their developments, as they definitely will, and keep improving their refinement levels as well it could mean a problem for everyone including Fiat.

Picture this, some 3 years down the line you walk into a Tata-Fiat showroom. There are two cars standing side by side. The Tata badged car comes with all the techno-gizmos, fantastic engine, fantastic everything and costs you 6 lakhs. Next to it is a Fiat with Fantastic engine again, loaded, but not to the gills like the Tata. It costs a whopping 8 lakhs. What will happen? Think of how Indians think. Also think practically. The persuasive salesman (Tata-Fiat showroom=push Tata, albeit subtly) may of course lend a helping hand to you in deciding.

I am not very sure how it will work out for Fiat ultimately. Fiat has decided to take the premium tag simply because they probably can not produce cars for as low a price as Tatas can. Hence by extension Tatas have decided to let them have the premium tag. IMO, tatas are not at all worried of taking the VFM and "entry level" cars tag for themselves.

srishiva · 28th May 2007, 14:13

Its a little weird arrangement they have. If Fiat is going to make available to TATA all their technology (other than one engine I dont see anything else), what are they gaining out of this ?
Also, it looks like TATA will need some time to move to the next level or they dont think they can compete with Japanese, Koreans, Americans, Germans.
Fiat would find it hard to compete with others in the premium brand also. They are not competing with Indian brands to think they are premium (except the price). They are competing in India with the best of the world.

I see TATA atleast with a plan, but for Fiat I dont see anything.

typeOnegative · 28th May 2007, 14:32

Quote:

Originally Posted by DCEite

So which TATA cars fits in the above statement?

You have a very poor sense of humour don't you? :(

Quote:

Originally Posted by srishiva

I see TATA atleast with a plan, but for Fiat I dont see anything.

Hasn't that always been the case?

28th May 2007, 13:29	#2
typeOnegative Senior - BHPian Join Date: Oct 2004 Location: Vikhroli, Mumbai, India Posts: 1,503 Thanked: 27 Times	Hmmmm. So things are moving as predicted/expected by many here. Congrats team-BHP.
	() Thanks

28th May 2007, 13:38	#4
amit Senior - BHPian Join Date: Feb 2004 Location: Mumbai Posts: 3,717 Thanked: 449 Times	Fiat and Tata are out to commit suicide. All the best to both of them! Have they done any survey regarding how people percieve the Fiat brand in India and if post tie-up there has been any improvement in Fiat's brand image? Also, if they want to sell Fiat badged cars as premium ones, then it's high time they starting training their dealers on dealing with premium customers. Currently, the staff at their dealerships aren't fit to cater to even the Indica and Palio customers. I hope this isn't some advance information/warning regarding the premium pricing of the Grande Punto and Linea cars. Last edited by amit : 28th May 2007 at 13:46.
	() Thanks

28th May 2007, 13:45	#5
GeekSrik Senior - BHPian Join Date: Apr 2006 Location: Bangalore Posts: 1,281 Thanked: 22 Times View My Garage	So what if fiat linea is sold as tata linea as long as there is good support and service. and the car itself will speak anyways! atleast the two partners who were arch rivals at one point in time, have decided to go ahead to see where this alliance can reach upto. i think only time will tell how profitable this can get! i am happy as long as its not the other way round - tata enters premium and fiat entry level
	() Thanks

28th May 2007, 13:47	#6
DCEite Senior - BHPian Join Date: Sep 2004 Location: NCR Posts: 3,415 Thanked: 2,533 Times	What about the Safari 4x4, Indigo XL. Will it be now called Fiat Safari 4x4? And Fiat Indigo XL ?
	() Thanks

28th May 2007, 13:51	#9
hrag BANNED Join Date: Nov 2004 Location: Bangalore / Madras Posts: 1,982 Thanked: 31 Times	Its a subtle message from Tata. Tata: Affordable cars FIAT: Overpriced passion
	() Thanks

28th May 2007, 13:52	#11
devarshi84 Senior - BHPian Join Date: Jun 2005 Location: Ahmedabad - Tor Posts: 4,024 Thanked: 211 Times View My Garage	There's no doubt that fiat palio stile is better built than Indica. Though not completely impossible, it would be a tough road for Tata to make fiat a premium brand competing with the likes of Honda, skoda, toyota and mitsubishi. Linea is a good car and may actually give a good boost IF tata is really serious on spending some good marketing bucks. why its possible Fiat fans are FIAT FANS Tata has a good network money to spend being the 3rd biggest player. Atachment and history of the brand (slightly scarred but still) Fiat has good technology Fiat cars are good looking Its a European brand (not really a luxury brand though) WHy its tough Fiat wows SSS problems Japanese have grown giants and will certainly take effective steps Last edited by devarshi84 : 28th May 2007 at 13:55.
	() Thanks

28th May 2007, 13:55	#12
srishiva Senior - BHPian Join Date: Nov 2006 Location: Bengaluru Posts: 4,375 Thanked: 2,256 Times	Looks like TATA have decided that they can't make higher end cars (at least as far as build is concerned) and Fiat wants to justify the numbers. TATA is getting sucked into this when they are doing well and can think ahead by getting better manufacturing.
	() Thanks

28th May 2007, 14:07	#13
Zappo Team-BHP Support Join Date: Oct 2005 Location: Hyderabad Posts: 5,922 Thanked: 2,686 Times	There is another possible aspect to this development. Tatas are going to look at the entry level. But they are not limited to developing entry level cars only. Entry level is only in terms of pricing. Already they have put in a Dicor engine in the Indigo. They now have an LWB Indigo with a 101ps engine. Now if they go ahead with their developments, as they definitely will, and keep improving their refinement levels as well it could mean a problem for everyone including Fiat. Picture this, some 3 years down the line you walk into a Tata-Fiat showroom. There are two cars standing side by side. The Tata badged car comes with all the techno-gizmos, fantastic engine, fantastic everything and costs you 6 lakhs. Next to it is a Fiat with Fantastic engine again, loaded, but not to the gills like the Tata. It costs a whopping 8 lakhs. What will happen? Think of how Indians think. Also think practically. The persuasive salesman (Tata-Fiat showroom=push Tata, albeit subtly) may of course lend a helping hand to you in deciding. I am not very sure how it will work out for Fiat ultimately. Fiat has decided to take the premium tag simply because they probably can not produce cars for as low a price as Tatas can. Hence by extension Tatas have decided to let them have the premium tag. IMO, tatas are not at all worried of taking the VFM and "entry level" cars tag for themselves. Last edited by Zappo : 28th May 2007 at 14:10.
	() Thanks

28th May 2007, 14:13	#14
srishiva Senior - BHPian Join Date: Nov 2006 Location: Bengaluru Posts: 4,375 Thanked: 2,256 Times	Its a little weird arrangement they have. If Fiat is going to make available to TATA all their technology (other than one engine I dont see anything else), what are they gaining out of this ? Also, it looks like TATA will need some time to move to the next level or they dont think they can compete with Japanese, Koreans, Americans, Germans. Fiat would find it hard to compete with others in the premium brand also. They are not competing with Indian brands to think they are premium (except the price). They are competing in India with the best of the world. I see TATA atleast with a plan, but for Fiat I dont see anything.
	() Thanks