WHAT IS BREWING BETWEEN TATA MOTORS AND FIAT?

What is brewing between Tata Motors and Fiat?

Fiat ruled Indian roads for almost three decades, by virtue of India’s closed market regime. But when country opened its doors to the world in 1991 (read liberalization) Indians got a taste of stylish models, and so naturally the Fiat models, which symbolized the proverbial ‘old geezers’ were pushed into the backyards. Of late, the company is successfully making in roads in not-so-easy-to-crack Indian markets, with some help from Tata Motors.

Italy’s largest carmaker Fiat is making yet another big bang entry into India. The iconic brand of the 80s and the early 90s, which later on acquired the image of being fuddy-duddy and irresponsible is all set to make yet another comeback in India. The company in its second attempt had failed to generate much interest among the Indians with obsolete model ‘Premier Padmini’ in 2001. Of late, the Company is all set to being its third innings in India that too on an encouraging note. All thanks to Tata Motors.

Fiat is betting heavily on its expensive hatchback Fiat 500, the elegant Linea and the latest Grande Punto. But the biggest plus being, Fiat’s sales team is taking advantage of Tata’s brand to push its sales.

The matter of fact is both Fiat and Tata cars are sold in same showrooms, though separate spaces have being earmarked for each. And it is being said that dealers are helping out the Fiat guys to sell their models, and thereby push Tata Motors on the backseat. And in case, if customers shows any reluctance, the dealers convince them by saying that Ratan Tata himself is on the Fiat board and so there won’t be any scope for yet another appalling experience.

For the uninitiated, Fiat has signed an MOU with Tata Motors in 2005 to manufacture passenger cars, engines and transmissions. The partnership between Fiat and Tata Motors is an attempt by the former to plant its feet strongly in India, by clearing all doubts about its longevity and performance in the Indian markets, besides giving the Italian auto major free-hand to the latter’s vast dealership network. On the other hand, Tata Motors is utilizing Fiat’s Ranjangoan plant to manufacture Indica and their new sedan.

Fiat Linea launched this year has already won the hearts of the Indians, though killjoys had written off the brand even before its launch. In fact, in the last five months, Fiat has managed to sell around 6500 units of Linea despite the slowdown and has become the second best selling car in C + segment.

In addition, the company has strategically stalled the launch of Bravo during this year, as indian market conditions are apparently not conducive, informed the highly placed sources of the company. As of now the company is concentrating its efforts in the untapped consumer segment with its hatchback cum sedan model Grande Punto. For now, the company is setting a target to sell around 2000 to 2500 units in India.

Tata Nano to be launched in Europe in partnership with Fiat

Now Nano is preparing to drive in Latin America. And yes, you got it right; it is the handiwork of Fiat. The much-talked about Nano will be launched in Latin America in partnership with Fiat. Ratan Tata informed Nano has passed the crash tests for European safety standards and will launched in Europe in 2011.

Nano, touted as the world’s cheapest car, has received 206,000 bookings in India.