Fiat Motors to separate its distribution network from Tata Motors
Published On Oct 18, 2010 03:50 PM By Ritesh for Fiat Linea
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At present, Fiat Motors is selling its products with the help and support of its partnership with the auto major Tata Motors. The Tata Motors is also offering the servicing to the company. Now as per the industry sources, certain controversies have started surfacing in this three years old JV (joint venture) comprising Tata Motors and Fiat Motors. That is why, this time Fiat Motors is mulling over the idea of having a totally separate distribution network, that is, the one which will have no connection with Tata Motors. But on the other hand, the Fiat products will continue to be sold through Tata Motors.
During the year 2007, Fiat India and Tata Motors had merged their forty seven dealers and hundred dealers all over the country. Now presently, the joint power of this merged group is one hundred and seventy five dealers. This strength is further expected to grow up to two hundred till the end of the year. According to the industry sources, Fiat Motors is, once again, giving a serious thought to its strategy, especially for the auto market of India. This time the company is focusing on points like how to ramp up its sales in the Indian domestic market. It is a major as well as clear fact now that the auto industry of India is growing at a high pace and its sales are touching heights of success with each progressive month. One of the best feature of the Indian auto market is that almost each auto maker is benefitting and that is why it is registering its growth in double digit.
Although, it is also a fact that in the present year, the sales of Fiat Motors in India have not picked up much. In fact, the company had made plans for selling around four thousand units of its products which included the Fiat Punto and also the Fiat Linea. But unfortunately, the company was unable to sell even half of its set target of sale for its products and that too, besides having a time of high market sales.
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