Sadly, Fiat thinks exactly the opposite of this. the money invested is a colloseul Rs 4,000 crore and despite having turned a profit, the initial cost and utilization of plant capacity to its fullest is not yet achieved. Now therein lies the problem.
- 2,00,000 units annually
- 2,50,000 engines and transmissions capacity IIRC
Is the stats of the new ranjangoan plant which was opened in 2007 march. Capable of producing the best in quality and with the most modern manufacturing processes, everything is in place. But sadly, the concept is let down badly by the execution.
What Fiat needs to understand is the importance of a brand. Yes, product counts, but its the brand ultimately that delivers the end product to the consumer.
Now when we analyse Fiat cars, they have three USPs
- great design
- best in class ride and hndling combination
- best in class safety WRT the body and sheetmetal used.
And tata cars have again three unique USPs
- VFM price tag
- space and comfort
- best in class owner reported mileage from their diesel vehicles.
Tata has what
Indian car buying public requires and Fiat has
what an Indian car buying enthusiast requires. So why not target a specified buyer groups with these? Fiat anyway isn't going great guns either and tata, despite spending $$$ on those idiotic drive tech 4 ads and unnecessarily sending thousands of printed brochures criticizing the swift and dzire twins has seen its sales fallen in august.
And than there was this rumor on a news channel that the JV is considering a split, which (thankfully) proved to be wrong. It took
Fiat 4 and a half gruellng years to set up a sales and service infrastructure an that too after begging at tata's doors in March 2006. Before that, the company was in a verge of extinction. Today it has set up a network of 175 dealers and service centres. To all fiat owners, I ask you one thing-what if this JV is dissolved and all 175 dealers terminate their contracts? Where will you go and beg for spare parts?
Now having numbers is one thing and executing those numbers is a different ballgame altogether. 175 is a very good number and if executed properly, would do wonders for fiat in the long term.
Fiat suffers from three major problems-
- brand perception
- spare parts supply issue
- quality of service issue.
No fanboyism please and accept it that this is the real truth. Otherwise why after humongous views of tbhp threads of anything on fiat this has not translated into sales? Are we really doing indirect free publicity for the company that it has taken the Indian market for granted? Maybe yes.
Now when anyone goes to a fiatata showroom to buy a fiat car, the salesperson themslves ask them to buy tata cars. Why? same mechanicals at a lower price is what they say. And what about fiat? Its expensive, less VFM, bla bla bla...actually the pofits per unit sold in tata brand is much higher than that of a fiat.
And the dealership cares a damn about the so called enthusiasts and the same is noticed whenever any fiat owner takes his car for service. Long wait, indifferent awful attitudes, lack of parts availability, poor quality of labour work is all that the have to face.
Their fault-spnding a big money on a car which is supposed to be reliable and trouble free. Whats the point of advertising the 50 month warranty, 50 month roadside assistance and 15,000 km service interval when despite improvements shown, you are not able to deliver a considerable percentage of positive improvement in the quality?
Now coming back to sales-the dealership is so confused (I have mentioned this elsewhere in another post in a different thread) about what to sell and to whom to sell.
The main reason-enormous number of variants, some really unnecessary.
The passenger car range has (all variants are BS4, BS3 variants are mentioned in italics):
tata nano (BS 3 and BS 4)
Tata Indica V2- DLE BS3
- DLS BS3
- DLS turbomax
- xeta 1.2 BS3 GLE
- xeta 1.2 BS3 GLS
tata indica Vista- TDI BS3 terra
- TDI BS3 aqua
- 1.2 safire terra
- 1.2 safire aqua
- 1.2 safire aura
- 1.2 safire aura ABS
- 1.2 safire aura plus
- 1.3 QJD terra
- 1.3 QJD aqua
- 1.3 QJD aura
- 1.3 QJD aura ABS
- 1.3 QJD aura plus
tata indigo manza- 1,4 safire aqua
- 1.4 safire aura
- 1.4 safire aura ABS
- 1.4 safire aura plus
- 1.3 QJD VGT aqua
- 1.3 QJD VGT aura
- 1.3 QJD VGT aura ABS
- 1.3 QJD VGT aura plus
Indigo CS- eGLS
- eGLX
- eLS diesel
- eLX diesel
Indigo XL fleet- CNG 1.4 100 ps mpfi
- 1.4 TDi diesel
Fiat Linea- 1.4 active
- 1.4 dynamic
- 1.4 emotion
- 1.4 emotion pack
- 1.3 diesel active
- 1.3 diesel dynamic
- 1.3 diesel emotion
- 1.3 diesel emotion pack
Punto- 1.2 active
- 1.2 dynamic
- 1.2 emotion
- 1.4 emotion
- 1.4 emotion pack
- 1.3 diesel active
- 1.3 diesel dynamic
- 1.3 diesel emotion
- 1.3 diesel emotion pack
- 1.3 diesel 90 hp vgt emotion pack
Now the plant produces 4 fiat motors in its facility-- 1.4 FIRE petrol
- 1.2 FIRE petrol
- 1.3 FGT multijet
- 1.3 VGT multijet
Too much of a product overlap (a whopping 52 variants offered in 6 product lines) can be fatal in the long term, just ask the sales persons and the first question that they raise is why so many vriants are they offering? The main answer lies in intra competition between the punto and vista and linea plus manza. Many variants of both these cars dangerously overlap each other in price tag and the end consumer is confused on what to buy.
So, whats the way forward? My request-REDUCE the variants and prun the non selling variants.
Lets start with tata.
Seriously, why drag on the 13 year old indica V2 and cannibalize the sales of vista? Yes, its dirt cheap but the thread shows that consumer looks for value and positioning, not price. es, it sells in bulk for the taxi market but again, why make the old turbo BS 4 compliant and drag it on and on? tata, its time to draw curtains on the indica and concentrate on the vista.
the vista TDI can be positioned in the taxi market since a mint white colour is offered with it. All the values of indica, only bigger and better.
And if tata is concerned about volumes rather than the image, then why not promote it? 5 variants pruned, only easy to sell and target the right consumer. the vista TDi would make a great product for commercial taxi owners. If you wanted to wipe off the taxi image of viats, why offering white shade in that? accept the truth that whatever be the image, you need volumes to earn profit and recover development costs of the vista. Which you haven't till now.
The vista QJD and safire should be targeted at private buyer. And each engine option has 5 variants, of which only terra and aura mid level sell the most. The aura abs and aura plus should be there for safety conscious buyers, no harm with that. But why just one additional variant only for dual airbags? My suggestion-let the aura plus be as it is, add ABS to "normal" aura and remove the stereo from it. the price increase over the marginal aura even if it is just Rs. 10,000 it would make for a great VFM purchase. The blue 5 and USB aux-in stereo can only be reserved for aura plus models. one variant each pruned, again much easier to sell.
USP: Mass buyers who want VFM confort, economy, space and comfort at a cheap price. target competition-the swift, ritz, beat, figo, i10 segment (petrol and diesels included) So the line up will have Indica vista (taxi plus public)
Indica vista (private buyers)- 1.2 safire and 1.3 QJD Terra base
- 1.2 safire and 1.3 QJD aqua mid level
- 1.2 safire and 1.3 QJD aura ABS (normal aura with added ABS minus stereo)
- 1.2 safire and 1.3 QJD aura plus (as it is)
The indigo manza is doing really well but still sales are not meeting targets. 4 variants of each model is causin utter confusion. Of these, dealers say that the base aqua and aura ABS sell the most. Aura plus is bought by decent number of buyers who know what to buy. So whats the point on keeping the normal aura model? The aqua base, aura ABS and aura plus are more than sufficient to meet customer requirements. 2 more variants pruned, more pressure relieved.
Indigo manza- 1.4 safire and 1.3 qjd aqua
- 1.4 safire and 1.3 qjd aura abs
- 1.4 safire and 1.3 qjd aura plus
The lineup will be again, perfect. The indigo Cs targets a different segment, so let it be as it is and the XL is solely for the meru fleet. the nano is an first time entry level product so its perfect fo its positioning. Diesel and europa will add more icing to the cake.
Now what about fiat?
Fist and formost, do we really need a punto 1.2? whats the point if its doing no wonders to the company? the car has nothing really unique about it in terms of engine, performance and poor mileage of just 9-11. Performance of 0-100 in 19 odd seconds? jeez, the cheaper i20 will leave you embarrased.
The 1.2 punto is also dangerously cannabilised by its stalemate, the vista safire 1.2. same mechanicals at a lower price. Only a miniscule go for the "fiat brand value". But why fiat? don't you want decent sales figures?
And secondly, whats the point of having a punto dynamic when it doesnt sell at all? ever since it was launched, the active and emotion are bestsellers. The dynamic-I have only seen TWO on the roads. Who will pay 35 k extra just for rear power windows, useless manual central locking and "unnecessary" features like a decorative silver finish console and pillar blackouts? No one.
And the 1.4 petrol? How can it be improved? Reduce the peak power rpm and alter the gear ratios. the 1.4 owners have in general not complained about mileage and are generally satisfied with the overall performance of the car. The gearbox is just absurd and more closer ratios will optimise performance and mileage altogether.
Moreover, the punto interior just sucks big time. Awful plastics in a supposedly "premium hatch" and a garish grey colou scheme only adds to the cheap feeling. The plastics need a drastic improvement, and kindly copy paste the linea's black and beige colour scheme. it will look very upscale and will deserve the quality worthy of a hatchback that is positioned to compete with the i 20 and the polo.
The emotion variant comes with a CD player. whats the use of it in today's age when sound quality is just awful and even a cheaper santro offers USB an aux-in elabled stereo as an option on its GLS model? My suggestion-remove the stereo and bring down the price by 10,000 or keep the price same and improve the interiors, road noise, refinement and overall finesse. We would prefer aftermarket audio unit.
Same goes for punto diesel. Why offer the 75 ps FGT version when theres the vista to take care of it? Moreover, the 90 hp version is actually more fuel efficient an overall an infinitely better engine than the FGT vesion, despite just marginal improvements in performance and the turbo lag. It needs to be tuned properly and close ratio gears are needed. Thats all. Again, the 75 hp punto should be replaced by 90 hp punto across all variants. So effectively 4 variants pruned in total and all other improved. Now, after all the aforementioned improvements, I would like to see this:
- punto active with linea spec being and black interiors, added rear power windows and a silver finish central console, 1.4 petrol and 1.3 90 hp diesel
- punto emotion with stereo removed and all improvements carried out, 1.4 petrol and 1.3 90 hp diesel.
- punto emotion pack with linea emotion pack spec interiors, 1.4 petrol and 1.3 diesel 90 hp.
- Competes with polo, i 20, jazz and fabia.
Now for the linea. The diesel is now outclassed by a new kid on the block-the vento. When you have a ready 1.6 multijet with 105 horses, WHY NOT BRING IT FIAT? 1.3 is out classed and now feels just underpowered as compared to verna and vento.
Moreover, since the 1.4 petrol is offered in the manza, get the 1.4 t-jet across all the linea variants as a PRODUCT DIFFERENTIATOR.
The active and dynamic hardly sell, its only the emotion and the emotion pack that sell the most. 2 variants for each engine option is more thn sufficient if there is intra competition with the manza. 4 variants will do nothing good. My suggestion-phase out the active and dynamic, remove the stereo from emotion (and alloys from emotion petrol) and rename it as dynamic. Overall finesse, altering of gear ratios and more reduction in NVH levels is definitely required to make the linea an overall a better product.
So, the lineup for fiat linea to compete with the vento, SX4, verna and city can be:
- dynamic with ABS(existing emotion renamed after stereo deleted and alloys (which are only in petrol) removed
- emotion pack-as it is.
- engine options-1.4 t-jet and 1.6 multijet
- get the duologic quick, fiat. the market for automatic is mature enough to accept it with the 1.6 multijet.
Service quality
fiat owners complain about the poor attitude of service persona, inconsistent availability of spare parts and second rate treatment to fiat owners. Why the hell is it? haven't we spent our hard earned money on tour product that we have to run fro pillar to post for even a basic level of service requirement? and why don't service advisors take pride in fiat cars? just shame on them. And at showroom, the dealers need to have a seperate space for exclusive fiat customers, and a staff dedicated ONLY TO FIAT who knows what he sells and should be confident enough to sell a fiat to a fiat-ian. Moreover, please make an effort to increase supply of spare parts and motivate dealers to order and stock them. A customer has to run for even a basic spare like an oil filter, wiper and indicators.
Advertising
The fiat advertisings have been cheesy at best, especially for the punto. the latest ad is just pathetic. An ad like this highlighting the punto USP
YouTube - Faithless -- Feelin Good -- Fiat and Faithless Present Would greatly enhance the car buying experience. Lifestyle, sporty, youthful, the fiat brand signifies this.
Signature stores and 500
The fiat 500 bombed.
Its a great product. When VW can sell 350 plus 12 year old "new beetles" why can't fiat move the 500 of showroom floors? My suggestion-re launch the 500 with a 2 cylinder turbo multi-air petrol engine as its USP and sell it ONLY through the signature stores, initially in Delhi, Chandigarh, Calcutta, Bombay, Chennai, Hyderabad, Bangalore and Ahmadabad. The fiat exclusive signature stores should also stock other lifestyle products (like I have seen in EU), accessories and other merchendise. Only allot to these who are committed to deliver the best. or make it company owned.
Fiat had 3 chances, all three failed. yet the company looks committed. It just needs the right policies from the right people.
The new model line consisting of: Fiat Linea 1.6 MJD and 1.4 T-jetFiat Punto 1.4 FIRE and 1.3 MJD 90 HP- active
- emotion
- emotion pack
tata Indica Vista 1.4 TDI (fleet)Tata indica vista 1.3 QJD and Safire 1.2- terra
- aqua
- aura abs
- aura plus
tata indigo manza 1.3 QJD 90 and 1.4 safire 90tata indigo CS 1.4 CR4 and 1.2 petrol xetaShould do perfect wonders. 30 variants overall is more than sufficient to cover the entire spectrum of the Indian car industry. Now hope that fiat is really listening and improves its products and gets tight shoulders with its staff at the dealerships rather than sitting helplessly and rubbing off shoulders and the responsibilities. Hope that fiat is no longer just called "the engine supplier" and continues to witness a decent sales figures in he coming months with this product lineup mix.
Either company wake up before the competition says "Tata" to you and Fiat altogether.