Fiat plans new retail strategy with partner Tata Motors

Fiat, the Italian car manufacturer is operating in Indian Auto market through an alliance with Tata Motors, India's largest automobile manufacturer and depends on the same for retail as well. But now the Italian major is about to come up with a new retail strategy which will turn the table around with the partner Tata Motors. The big news has been revealed by The Business Line according to which Fiat is working hard on new retail strategy which will soon be announced by company officials. The main aim behind building up this new strategy is to ensure stronger customer base in India. The company has been doing good in Indian Auto market but recently the Fiat models were not able to register among the increasing trend of this domestic market.

As per industry sources, the major reason behind the new retail strategy is the joint retail business resulting in brand dilution. The Italian major is facing a serious problem with the existing retail scenario as a joint retail business is resulting into undue dilution and sometimes the dealers tend to support the Tata brand cars leaving Fiat models unexposed. But denying the big claim, the top officials commented that the fact revealed has no base and both the companies are working smoothly, with hiccups being part of smooth working. He also said that the alliance is still in active stage and companies will move forward with aim to become better.

Reports also claim that the below expected performance of Fiat models this year is becoming a topic of concern for the company and moreover if no rigid steps are taken, this year's target of 50,000 units will also become dicey. The period from April to November 2010 marked a sale of 14,956 units of Fiat which includes Fiat Palio, Fiat 500, Fiat Grand Punto and Fiat Linea as against 17,079 units last year. The company is coming up with a sub 4 lakh model for the year 2012 and is expecting goof out of it and claims 130,000 unit sales by 2014 leading to 5% market share. Thus for the successful debut of this upcoming small car from Fiat, the company is working on new and better retail strategy.

Read More on : Fiat Grande Punto price in India