Fiat and Suzuki Might think of Strengthening their Ties in India

A guesstimate is being built by the industry analysts on the partnership of Fiat and Suzuki because the partnership of Fiat with Tata end up in last April and Fiat is making its way to India, which is Asia’s third largest car market. The sales of the joint venture of the Italian automaker and the Indian automaker decreased to 24 percent for the last fiscal year and the six year old deal was ended, where in Fiat was allowed to sell vehicles at dealership’s of Tata. Ashvin Chotai, managing director of industry researcher Intelligence Automotive Asia said that Tata has many other quandaries to think about and work upon them especially after the launch of Jaguar Land Rover.

That is obvious that if the relationship of Fiat with Tata Motors is degrading then the alliance of Fiat with Suzuki will definitely grow up. Suzuki has a 42 percent of share in the Indian market from which Fiat can get benefits by using its dealership networks and its expertise in the regional areas. At the same time Suzuki can obtain increased access to Fiat’s diesel motors and its dealership in developing markets. However, the Italian auto car maker has made no official comments on the potential partnership although the two companies have the past of association. Fiat supplies diesel motors to Suzuki since 2009 and a jointly developed SUV was launched in the year 2006. But Suzuki might be cautious before it gets into any deal with Fiat because of the recent tie-up with Volkswagen, which failed and is now being resolved in the court.