Ferrari to drive into India with Tata Group

sushanthr77 · 18th July 2007, 14:32

Selling a Ferrari at a Tata/Fiat dealer? You guys really think so?

Ferrari is an exotic brand and is always sold with an exclusive showroom/service arrangement. Fiat knows best how to handle the Ferrari brand.

Even at 2007 Geneva Motor show, Maserati, Alfa, Lancia and Fiat Auto were placed miles away from the Ferrari range. I think it is really silly to think that Fiat doesn't know how to manage the Ferrari brand image.

csentil · 18th July 2007, 14:44

Quote:

Originally Posted by WhiteKnight

Oh yes, not in India though. First one I walked into was a Porsche` showroom in CA. I made it a hobby after that and I never had any bad experiences. But then, out of fear, my first visit was in a Corvette- don't think it mattered!

Now the world know that Indians make money too.

They don't really. There are many brands which makes people "aspire" for it. Point to note is, many would carry on with the dream and buy those one day. So, a true marketer, would always promote those aspirants to come in- he might not buy today, but would definitely do that tomorrow.

In India , things could be different, though. Indians seem to spend too much attention on what you wear, what you drive, kind of stuff. Recently, an MLA was denied permission to enter portico of a hotel in Trichur, because he arrived in an Ambassador!!!

True. In India perceptions matter. You go to a 5 star hotel with a foreigner and then watch the treatment meted out. Royal Orchid hotel told me parking was full and did not do valet parking for my Matiz whereas the next car which was a Corolla got valet parking immediately.

All men are born equal, but some are more equal than others.

That's why the question on the treatment meted out in Indian showrooms.

agent4ferrari · 18th July 2007, 15:18

Tata has an image of mediocore quality service, and deal in mass production cars that are aimed at the more value for money conscious buyer audiences. Tata also has an image to mnufacture cars with crude finishing. I am sure by associating itself with Tata, Ferrari is making sure to ruin its high profile and snoby image agasint neiche clients of India. If u ask any Ferrari owner in india their openion about Tata passenger cars, they say its S**T. The two brands can never be digested well together as they have different brand equitys and brand images/perceptions. Also Tata has untill now not been dealing with anything close to the super car or for that sake luxury car market. Also to setup one showroom the avergae cost is Rs.30 Crs, incuding deposits, inventory gurantees etc. Are their somany buyers that will buy Ferraris to sustain multiple showrooms in the long run, that too not one sales outlet but two or three in different parts of India. Even Lamborghini sold well only in its first year. Now the Lamborghini Market has ben saturated in India, and they are having a tough time selling new units henceforth. Would Tata be so silly as to incur losses just for the heck of associating with Ferrari, only to uplift its own Image, while Ferraris Image be degraded in the bargain? Also untill Ferrari has no experience with the "middle" range of Fiat, i.e. Alfa Romeo and the likes, and estabilishing the brands sucessfully in India, posting profitable sales figures for firtly the 'down in the dumps' Fiat range of cars in India, which i guess will take another 2 years and then the Alfa Romeo Range that will take another 2 to 3 years, it would be a joke if Tata and Fiat both jump to Ferrari. Tata had desparately tried even for Rolls Royce, but had failed miserably in its application. Tata is not just simply cut out to deal with direct to consumer High Eng products. If they attempt now without any experince they are sure to cut a very sorry figure. Tata Ace to Ferrari 599 GTB!!!! IMAGINE WHAT NONSENsE!. Check out todays Times Of India Pg21 Times Business Headlines " Tata Motors may market Fiat Luxury brands" .........Case dismissed and closed your honour..LOL.

Zappo · 18th July 2007, 15:42

If and when this happens be sure of a few things.
* Ferrari will have its exclusive dealerships.
* In all probabilities you will not find any Tata mention either at the dealerships or on the car. Remember the intial Mercs that were launched here...

However what Tata will provide is its engineering and marketing support. And that is crucial for Ferrari to succeed here while keeping the establishment costs low. Consider the arrangement to be something like those big conglomerates around the world, including even the Microsoft that has so many people from TCS, Satyam and such places working at their campuses by the droves. Got the picture?

amit · 18th July 2007, 15:42

Quote:

Originally Posted by sushanthr77

Fiat knows best how to handle the Ferrari brand.

I really hope they do!

GTO · 18th July 2007, 15:57

1. Late eighties : Tata dominates the commercial segment with the 407, and sends his competitors back home. Home run!

2. Late nineties : Tata scares the hell out of the Japanese and Korean with the Indica / Indigo combo and takes up the no.2 / no.3 slot in sales.

3. Late 2000's : He is looking to dominate the luxury segment?

Splendid Mr. Tata!! We never expected any less from you.

sivadas · 18th July 2007, 16:09

Assume Tata showrooms are selling Ferrari as well and some one is going for a Ferrari test drive. The sales rep. can very well say that
"Sir currently we don't have Ferrari test drive vehicle; why dont you try the new Indica, only difference is that Ferrari has little more power"

This is a standard dialogue dealership guys say if they don't have the right model/variant for test drive.

agent4ferrari · 18th July 2007, 16:26

Late 2000s , Tata will only keep looking to dominate, doubt if they will ever be able to reach Ferrari. First they shall look at what they have already invested in ( Fiat) then try Alfa Romeo, Then Lancia. Only after knowing the game shall they get into Maserati And Ferrari teritory. Yes if they do get them down it shall only be exclusive dealerships with no sign of Tata, like Mercedes had. But then all know why Mercedes separsted from Tata ultimately. Fortunately Rolls was saved of that torture, even if VW, BENTLEY, SKODA, LAMBORGHINI, BMW, PORSCHE all 7(VW Cos) have entered India already, but all through different dealerships and channels. It will be wise for Fiat also to follow the same path in India.

scooby05 · 18th July 2007, 16:38

Quote:

Originally Posted by agent4ferrari

Tata has an image of mediocore quality service, and deal in mass production cars that are aimed at the more value for money conscious buyer audiences. Tata also has an image to mnufacture cars with crude finishing. I am sure by associating itself with Tata, Ferrari is making sure to ruin its high profile and snoby image agasint neiche clients of India. If u ask any Ferrari owner in india their openion about Tata passenger cars, they say its S**T. The two brands can never be digested well together as they have different brand equitys and brand images/perceptions. Also Tata has untill now not been dealing with anything close to the super car or for that sake luxury car market. Also to setup one showroom the avergae cost is Rs.30 Crs, incuding deposits, inventory gurantees etc. Are their somany buyers that will buy Ferraris to sustain multiple showrooms in the long run, that too not one sales outlet but two or three in different parts of India. Even Lamborghini sold well only in its first year. Now the Lamborghini Market has ben saturated in India, and they are having a tough time selling new units henceforth. Would Tata be so silly as to incur losses just for the heck of associating with Ferrari, only to uplift its own Image, while Ferraris Image be degraded in the bargain? Also untill Ferrari has no experience with the "middle" range of Fiat, i.e. Alfa Romeo and the likes, and estabilishing the brands sucessfully in India, posting profitable sales figures for firtly the 'down in the dumps' Fiat range of cars in India, which i guess will take another 2 years and then the Alfa Romeo Range that will take another 2 to 3 years, it would be a joke if Tata and Fiat both jump to Ferrari. Tata had desparately tried even for Rolls Royce, but had failed miserably in its application. Tata is not just simply cut out to deal with direct to consumer High Eng products. If they attempt now without any experince they are sure to cut a very sorry figure. Tata Ace to Ferrari 599 GTB!!!! IMAGINE WHAT NONSENsE!. Check out todays Times Of India Pg21 Times Business Headlines " Tata Motors may market Fiat Luxury brands" .........Case dismissed and closed your honour..LOL.

If you do happen to be what your name suggests, you would be the first employ of the new venture. Marketing Boss of ferrari in India.
Now what do you think of the Tatas, They would find Showroom space in their Taj Hotel outlets, and you would be offering Champagne to prospective customers to help them decide the configuration!!
Nothing can be termed nonsense in todays world, Its a Material world!

MaserQ · 18th July 2007, 17:31

Quote:

Originally Posted by agent4ferrari

Late 2000s , Tata will only keep looking to dominate, doubt if they will ever be able to reach Ferrari. First they shall look at what they have already invested in ( Fiat) then try Alfa Romeo, Then Lancia. Only after knowing the game shall they get into Maserati And Ferrari teritory. Yes if they do get them down it shall only be exclusive dealerships with no sign of Tata, like Mercedes had. But then all know why Mercedes separsted from Tata ultimately. Fortunately Rolls was saved of that torture, even if VW, BENTLEY, SKODA, LAMBORGHINI, BMW, PORSCHE all 7(VW Cos) have entered India already, but all through different dealerships and channels. It will be wise for Fiat also to follow the same path in India.

Big names like Toyota, Ford, Honda and Mercedes entered the Indian market with Indian partners at a time when the Indian automobile scene was in its nascent stage as far as foreign investment was concerned. As time went on, the big car makers bought into their partners stake for various reasons including relaxation of government regulations.

Honda intially partnered SIEL and Toyota with Kirloskar. Did the Indian partners have any experience at all in producing world class cars? My point is, Tata are not going to be dishing out Ferraris from its Pune production line...are they?

As far as Fiat is concerned....they tried going it alone but failed. So we will have to live with Tata service for now....

And yes, BMW is not a VW group company and it is Porsche who own a minority stake in VW. :-)

karlosdeville · 18th July 2007, 17:39

Having a local inside man is very important for any large manufacturer. Tata's bit of the venture will probably not be visible to the customer, while it will add some peace of mind. It doesnt mean theres going to be "Horn OK Please" stuck to the back of every Ferrari sold here. Cmon!

Either ways, Tata has been doing very well on customer satisfaction surveys.

wolfinstein · 18th July 2007, 17:43

I guess They would aim at launching the Redefined V3 Platform soon, So as to capitalize and build on the New TATA Brand Image.

TATA may be managing the Sales and After sales of the Ferrari or any other FIAT line-ups, I don't think they would be bringing in Manufacturing as of Yet, IMHO it will be CBU that will come for the next 3-5 years of handling the Brand.

wonderboy · 18th July 2007, 17:46

Tata's looking at buying Jaguar and Land Rover from Ford too..See the following ET report:

'Tata Motors may bid for Ford's Jaguar, Land Rover'
18 Jul, 2007, 1617 hrs IST, PTI

LONDON: Tata Motors, India's biggest automobile company, is understood to be in early stages of evaluating a bid for acquiring the Jaguar and Land Rover marques from Ford Motor, British media reports said.

Tata Motors is understood to have instructed advisers in the past fortnight to begin evaluating the merits of a joint offer for Jaguar and Land Rover, which have been earmarked for disposal by struggling American car giant Ford, 'The Daily Telegraph' said.

If successful, it would rank among India's biggest overseas takeover deals, the report said, citing unidentified sources.

When contacted, a Tata Motors spokesperson told media: "We have absolutely no comments to make."

Tata Group has been involved in major overseas takeovers in recent times, including the 6.7 billion pound acquisition of Anglo-Dutch steel company Corus through Tata Steel earlier this year.

"Analysts suggest that Jaguar and Land Rover may fetch about 1.5 billion dollar to Ford. Besides, people close to the situation said that Tata Motors' evaluation of a bid was at an 'exploratory' stage and may not lead to a formal bid for the two brands," the Telegraph said.

The report also said Tata Motors is understood to have signed a confidentiality agreement with Ford in recent days.

Besides Tata, other car makers may be interested in bidding, while a formal auction would also be likely to attract private equity firms, it added.

Mod's Note: Please do not copy-paste material from other sites or outside editors. They add unnecessary HTML tags which make things difficult to read.

Thingummy · 18th July 2007, 18:20

Quote:

Originally Posted by karlosdeville

...
Either ways, Tata has been doing very well on customer satisfaction surveys.

Do these surveys include the FIAT customers? I would love to be part of one - I had the recent misfortune of damaging the fuel pump on my Palio at a reasonably remote place, and the closest TATA motors dealer (30km away) refused to even offer tow service, with the explanation "We have nothing to do with FIAT sir" ... The reason i bought a Palio was with strong hopes that the TATA-FIAT alliance would address the network reach and emergency service aspect, but doesn't really look its happening. Even within the TATA network, there seem to be only a few handpicked dealerships which are being trained and equipped to deal with FIAT cars, so its definitely a far cry that any of the TATA dealers will ever get to see a Ferrari parked in their display areas...

wolfinstein · 18th July 2007, 18:29

Not All TASC are FIAT Service Stations and Not All FIAT service stations are TATA ready, They are training both these types in phased manner.

After all the Alliance is hardly 1 to 1.4 years old.

18th July 2007, 14:32	#46
sushanthr77 BHPian Join Date: Jan 2007 Location: Mangalore / DXB Posts: 280 Thanked: 5 Times View My Garage	Selling a Ferrari at a Tata/Fiat dealer? You guys really think so? Ferrari is an exotic brand and is always sold with an exclusive showroom/service arrangement. Fiat knows best how to handle the Ferrari brand. Even at 2007 Geneva Motor show, Maserati, Alfa, Lancia and Fiat Auto were placed miles away from the Ferrari range. I think it is really silly to think that Fiat doesn't know how to manage the Ferrari brand image.
	() Thanks

18th July 2007, 15:18	#48
agent4ferrari BHPian Join Date: Mar 2006 Location: MUMBAI Posts: 193 Thanked: 0 Times	Hahaha!!! Tata has an image of mediocore quality service, and deal in mass production cars that are aimed at the more value for money conscious buyer audiences. Tata also has an image to mnufacture cars with crude finishing. I am sure by associating itself with Tata, Ferrari is making sure to ruin its high profile and snoby image agasint neiche clients of India. If u ask any Ferrari owner in india their openion about Tata passenger cars, they say its S**T. The two brands can never be digested well together as they have different brand equitys and brand images/perceptions. Also Tata has untill now not been dealing with anything close to the super car or for that sake luxury car market. Also to setup one showroom the avergae cost is Rs.30 Crs, incuding deposits, inventory gurantees etc. Are their somany buyers that will buy Ferraris to sustain multiple showrooms in the long run, that too not one sales outlet but two or three in different parts of India. Even Lamborghini sold well only in its first year. Now the Lamborghini Market has ben saturated in India, and they are having a tough time selling new units henceforth. Would Tata be so silly as to incur losses just for the heck of associating with Ferrari, only to uplift its own Image, while Ferraris Image be degraded in the bargain? Also untill Ferrari has no experience with the "middle" range of Fiat, i.e. Alfa Romeo and the likes, and estabilishing the brands sucessfully in India, posting profitable sales figures for firtly the 'down in the dumps' Fiat range of cars in India, which i guess will take another 2 years and then the Alfa Romeo Range that will take another 2 to 3 years, it would be a joke if Tata and Fiat both jump to Ferrari. Tata had desparately tried even for Rolls Royce, but had failed miserably in its application. Tata is not just simply cut out to deal with direct to consumer High Eng products. If they attempt now without any experince they are sure to cut a very sorry figure. Tata Ace to Ferrari 599 GTB!!!! IMAGINE WHAT NONSENsE!. Check out todays Times Of India Pg21 Times Business Headlines " Tata Motors may market Fiat Luxury brands" .........Case dismissed and closed your honour..LOL.
	() Thanks

18th July 2007, 15:42	#49
Zappo Team-BHP Support Join Date: Oct 2005 Location: Hyderabad Posts: 5,921 Thanked: 2,679 Times	If and when this happens be sure of a few things. * Ferrari will have its exclusive dealerships. * In all probabilities you will not find any Tata mention either at the dealerships or on the car. Remember the intial Mercs that were launched here... However what Tata will provide is its engineering and marketing support. And that is crucial for Ferrari to succeed here while keeping the establishment costs low. Consider the arrangement to be something like those big conglomerates around the world, including even the Microsoft that has so many people from TCS, Satyam and such places working at their campuses by the droves. Got the picture?
	() Thanks

18th July 2007, 15:57	#51
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,516 Thanked: 300,575 Times View My Garage	1. Late eighties : Tata dominates the commercial segment with the 407, and sends his competitors back home. Home run! 2. Late nineties : Tata scares the hell out of the Japanese and Korean with the Indica / Indigo combo and takes up the no.2 / no.3 slot in sales. 3. Late 2000's : He is looking to dominate the luxury segment? Splendid Mr. Tata!! We never expected any less from you.
	() Thanks

18th July 2007, 16:09	#52
sivadas BHPian Join Date: Oct 2004 Location: Bangalore Posts: 506 Thanked: 208 Times View My Garage	Assume Tata showrooms are selling Ferrari as well and some one is going for a Ferrari test drive. The sales rep. can very well say that "Sir currently we don't have Ferrari test drive vehicle; why dont you try the new Indica, only difference is that Ferrari has little more power" This is a standard dialogue dealership guys say if they don't have the right model/variant for test drive.
	() Thanks

18th July 2007, 16:26	#53
agent4ferrari BHPian Join Date: Mar 2006 Location: MUMBAI Posts: 193 Thanked: 0 Times	Late 2000s , Tata will only keep looking to dominate, doubt if they will ever be able to reach Ferrari. First they shall look at what they have already invested in ( Fiat) then try Alfa Romeo, Then Lancia. Only after knowing the game shall they get into Maserati And Ferrari teritory. Yes if they do get them down it shall only be exclusive dealerships with no sign of Tata, like Mercedes had. But then all know why Mercedes separsted from Tata ultimately. Fortunately Rolls was saved of that torture, even if VW, BENTLEY, SKODA, LAMBORGHINI, BMW, PORSCHE all 7(VW Cos) have entered India already, but all through different dealerships and channels. It will be wise for Fiat also to follow the same path in India.
	() Thanks

18th July 2007, 17:39	#56
karlosdeville Distinguished - BHPian Join Date: Jul 2006 Location: Pune Posts: 11,976 Thanked: 18,276 Times View My Garage	Having a local inside man is very important for any large manufacturer. Tata's bit of the venture will probably not be visible to the customer, while it will add some peace of mind. It doesnt mean theres going to be "Horn OK Please" stuck to the back of every Ferrari sold here. Cmon! Either ways, Tata has been doing very well on customer satisfaction surveys.
	() Thanks

18th July 2007, 17:43	#57
wolfinstein BHPian Join Date: Feb 2006 Location: New Delhi Posts: 994 Thanked: 20 Times	I guess They would aim at launching the Redefined V3 Platform soon, So as to capitalize and build on the New TATA Brand Image. TATA may be managing the Sales and After sales of the Ferrari or any other FIAT line-ups, I don't think they would be bringing in Manufacturing as of Yet, IMHO it will be CBU that will come for the next 3-5 years of handling the Brand.
	() Thanks

18th July 2007, 17:46	#58
wonderboy Newbie Join Date: Jul 2007 Location: Delhi Posts: 19 Thanked: 0 Times	Tata's looking at buying Jaguar and Land Rover from Ford too..See the following ET report: 'Tata Motors may bid for Ford's Jaguar, Land Rover' 18 Jul, 2007, 1617 hrs IST, PTI LONDON: Tata Motors, India's biggest automobile company, is understood to be in early stages of evaluating a bid for acquiring the Jaguar and Land Rover marques from Ford Motor, British media reports said. Tata Motors is understood to have instructed advisers in the past fortnight to begin evaluating the merits of a joint offer for Jaguar and Land Rover, which have been earmarked for disposal by struggling American car giant Ford, 'The Daily Telegraph' said. If successful, it would rank among India's biggest overseas takeover deals, the report said, citing unidentified sources. When contacted, a Tata Motors spokesperson told media: "We have absolutely no comments to make." Tata Group has been involved in major overseas takeovers in recent times, including the 6.7 billion pound acquisition of Anglo-Dutch steel company Corus through Tata Steel earlier this year. "Analysts suggest that Jaguar and Land Rover may fetch about 1.5 billion dollar to Ford. Besides, people close to the situation said that Tata Motors' evaluation of a bid was at an 'exploratory' stage and may not lead to a formal bid for the two brands," the Telegraph said. The report also said Tata Motors is understood to have signed a confidentiality agreement with Ford in recent days. Besides Tata, other car makers may be interested in bidding, while a formal auction would also be likely to attract private equity firms, it added. Mod's Note: Please do not copy-paste material from other sites or outside editors. They add unnecessary HTML tags which make things difficult to read. Last edited by Zappo : 18th July 2007 at 19:15. Reason: Formatted the content
	() Thanks

18th July 2007, 18:29	#60
wolfinstein BHPian Join Date: Feb 2006 Location: New Delhi Posts: 994 Thanked: 20 Times	Not All TASC are FIAT Service Stations and Not All FIAT service stations are TATA ready, They are training both these types in phased manner. After all the Alliance is hardly 1 to 1.4 years old.
	() Thanks