Tata Fiat joint venture has been facing problems for months and the reasons were, firstly least importance to Fiat products like Fiat Linea and Fiat Grande Punto at Tata dealerships and secondly, a poor quality treatment for Fiat products at service centers. These two reasons were recently addressed by Mr. Ratan Tata but only on paper I guess, that is why Fiat is all set to leave Tata’s dealerships and will open up its own.
Sooner or later this was supposed to happen and with Fiat’s sales showing a steep decline, this was the right time to take this move. Dumping Tata, Fiat is now planning to go all alone in the Indian automobile market. The joint venture though important only harmed Fiat in one way or the other and this new idea of continuing the journey alone is very much sensible as well as better in terms of public relations.
Within a time span of 12-18 months from now, Fiat will come up with its own dealerships in 20 major cities across India and eventually will leave Tata dealerships completely. This disassociation is only being addressed at the dealership level and there is no information whether the two will part ways completely or not. So we believe the alliance is still intact and primarily only dealerships are being changed.
Fiat India president, Mr Rajeev Kapoor, confirming this development recently said, “Fiat cars will now be sold separately and independently. Also, we are opening two Fiat cafes, one each in Delhi and Pune, for promoting the brand by bringing ‘Italian-ness’,”
Since the company has decided to open separate dealerships I strongly believe that very soon the company might also like to open its own service centers as aftersales service of Fiat cars is also an issue which is definitely disappointing Fiat owners.
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