Tata-Fiat to closely review the alliance

Tata Motors and Fiat distribution partnership is witnessing lack of sales for the Italian auto company leading to review the five years old alliance between the two auto companies.

Yesterday, R. Ramakrishnan Tata Motors vice-president (commercial-passenger car business unit) in New Delhi informed the reporters that Tata Motors is working towards redrawing its plans to push the sales. The company could not attain the heights it assumed it would reach with Fiat cars.

Sometime back, Sergio Marchionne Fiat CEO has showed his concern over the way the five year partnership plan has worked out. He said taking in loop the partnership with Tata Motors that both the auto companies need to redesign the deal. The company had given rights to its partner to distribute in few areas but that also did not work.

The Indian utility maker and Fiat are concerned over the sales of the Italian car models. It was being highly speculated that Fiat was planning to open its own brand showrooms. While Tata Motors has denied all such reports over the disagreement between the two auto mobile giants.

Fiat and Tata Motors joined hands for this distribution alliance in the year 2006 when the Indian auto giant started rolling out Fiat Palio in the domestic auto industry. Currently, Tata Motors sells Fiat Punto, Fiat 500 and Fiat Linea in India.

Ramakrishnan added that the auto companies were looking forward to start the brand image centers for the Italian auto mobile company in Pune and Delhi. However, the cars will be sold from the Tata Fiat outlets.

As per the stats available Tata Motors reported that it sold 24752 Fiat cars in the financial year which ended on 31st March 2010. With the available stats it was reported that from April to December more than 17000 units have been sold from Fiat's establishment which is less than the last years sale.

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