Category Archives: India

by - 9 Comments

India, the next step for Fiat Panda

Although there is no confirmation from the brand, FGW had access to some information regarding the fact that current Fiat Panda will arrive soon in India. It is actually a possibility known from before but that is getting more solid as other car info sources begin to talk about. According to it, the small car may be available in India’s dealerships in 2013 but it might have another name (maybe Uno?) and Fiat thinks to sell around 24.000 units in the first year. The product must  allow Fiat to reach its target sales of 130.000 units sold by the year 2014. It is without any doubt a very optimistic number as Fiat figures in India have dropped considerably during the last months (in the first 5 months of this year, sales have fallen 28% in a whole market that grows 12%). Anyway the Panda would the right product for that. Actually its second largest market could become India, as its characteristics fit very well into Indians needs and desires when buying a car.

India is by far the largest market for small cars. 41% of total car sales during 2011 corresponded to A-Segment cars, which is more or less 1 million vehicles. They just love small, cheap and practical cars, because most of them are shifting from a motorcycle to their first car. And from A-Segment cars they prefer 5 door tall body type with small but efficient engines. Suzuki is the leader of the market and the segment with its popular Alto, A-Star (aka Alto), Wagon R, Ritz (aka Splash), Estilo and 800. 6 options just for one segment, and most of them 5 door tall compact cars. The same what Panda offers: a small and tall A-segment car with big interior space and efficient engines. But why has not Fiat thought about selling it before? Indian sources says that it is because of the agreement signed by Fiat and Tata, in which Tata asked Fiat not to produce the Panda in India as it could become a real threat to Tata Nano. But those are just speculations. However, now that Fiat is on its way to sell its cars directly, the Panda could arrive soon and maybe hit the market with its great body shape, awesome interior and terrific MultiAir engines. This scenario could be only possible if Fiat decides to produce it locally as imported cars are highly charged with taxes.

The Panda, which continues to lead A-segment sales in Europe and became Italy’s best selling car, could reach interesting sales figures taking into account the results of its main competitors. The Maruti Alto sold more than 310.000 units, followed by Wagon R with 147.000, and Hyundai i10 with more than 138.000. In other words, India could work as USA works for Fiat 500, which has become its second largest market after Italy. If Fiat wants to become an important player in Indian market must consider a specific product for it. The good thing is that the same product they successfully sell in Europe could fit perfectly Indians desires.

by - 0 comments

New versions for Ram, 500, Bravo, Linea and Giulietta

Ram 1500 Laramie Limited. Photo by netcarshow.com

The ending week brings a lot of news related to the coming versions of Ram pickup, Fiat 500 and Bravo, and the first restyling of Fiat Linea. The offer of the bick truck from Ram will add a luxury version called Laramie Limited, featured with heated steering wheel, ventilated front seats and heated rear seats, to replace the Laramie Longhorn version. It will be Ram’s most expensive pickup and is part of the strategy of the brand to cover a the fast growing segment of luxury trucks. Chrysler has seen an opportunity among those clients that are not cowboys but want a big truck to use in the city.  In fact this kind of pickups are allowing Ram to rise the average price of its products. Last year, 13% of light -duty Ram pickups were sold for at least $40.000 (+9% compared to 2010), and among heavy-duty one, those pickups with prices above $50.000 represented 29% of total sales (+22%). In other words a new subsegment has born and Ram is ready to cover it. For the coming months, though, they should develop an exclusive model (not only an update of current model) in order to address more directly this kind of client. Last year, Ram sold around 315.000 units, 78% of them in the US, up 23% on 2010 figures,  double of growth that had its eternal rivals, Ford F-150 (+11%) and Chevrolet Silverado (+12%).

Fiat 500 Street MY 2013

Meanwhile in Italy Fiat has introduced the 500 Model Year 2013. Available in both body types, 3 door hatchback and cabrio, the car is now offered with 6 new colours and 2 new versions. The MY 2013 introduces the blue “Dipinto di blu”, the purple “Dolce”, gray “Colosseo”, red “Diva”, yellow “Sole” and Beige “Cappuccino”. They will be also available with 2 more interior options: Cioccolato/Avorio (Chocolate/Ivory) and Gray/Black. Lounge version is now possible to have with 14 axes rim of 15″. In terms of accessories, there are 2 more versions: the Street (Black Matt color, 16″ rims, spoiler, new seats, crome gearbox) starting at €13.750 for the 1.2. The other version is called Color Therapy, that according to Fiat, it develops the pop and coloured soul of the 500 through colours that had made this model so famous. MY 2013 does not mean any change in design, as Fiat is waiting for the first real facelift in the coming months in order to enhance in a better way the new rivals.

Fiat Bravo Sporting for Brazilian market

After some weeks of the presentation of Fiat Bravo MY 2013 for Brazilian market, they have showed the Sporting version. From next week Brazilians will be able to buy the Bravo with 17″ rims with new sporty touch outside and inside. It adds a red frame in the grill, a spoiler and a suspension 25mm lower than its ‘common’ brothers. Sky Dome roof is standard. Will be available with both gearbox, manual or Dualogic starting at R$58.140 (€23.000). Is then more expensive than Essence version R$53.140 (€21.000) and cheaper than Absolute (€24.600) and T-Jet versions (€26.200). The engine is 1.8 E-torQ and is only available with 4 different colors: yellow, white, red and green. Fiat , which is Brazil’s best selling carmaker, is trying to recover its market share in C-segment due to the fall of sales of its Bravo and Linea. During the first 5 months of 2012 they have sold 3.478 Bravos and 3.419 Lineas, far away from the leader of the segment, Toyota Corolla with 20.681 units sold so far.

Alfa Romeo Giulietta Sportiva

Alfa Romeo wants to keep the good results of its C-segment Giulietta. In April and May it was Italy’s best selling car in its segment surpassing VW Golf. After the arrival of entry level version of 1.4 T with 105 HP, now is turn for a more sporty version. The Supersportiva will arrive soon offering an interesting sporty package with 1.4 MultiAir 170 HP , 2.0 JTDM 140 HP or 2.0 JTDM 170 HP. It comes with 18″ rims (the same of QV version) with Brembo brakes, darken stop lights, matt external mirrors; sporty pedals, leather seats with red stitching, among others. A good way to keep shaking the market in a moment when all segment sales are droping. This year is expected to be really hard for Alfa Romeo’s sales figures as they just count on 2 models and Giulietta one is now having problems outside Europe with the arrival of new competitors. In Italy this car should take the comand of C-Segment sales, thanks to a wider range of versions and GPL options, now more appreciated by Italians. YTD sales figures indicate the Giulietta is just 2.951 units behind the Golf, but it seems this gap will reduce as the Giulietta was in May, for second month in a row, the best selling compact in Italy.

Fiat Linea 2013

Finally from Turkey arrives the last news. The Linea, Turkey’s  best selling car, has received its first facelift since it was introduced in 2007. The make up affects the outside and inside design and allows it to look much better and elegant. Now it comes with a rear spoiler and inside there is a new design for the steering wheel and redesigned instrument panel, and a new dashboard. Engines don’t change: 1.4 Fire with 77HP, 1.3 MultiJet 95 HP and 1.6 MultiJet 105 HP. Inside the whole dashboard and panel were changed and took from the Punto Evo but adding better looking materials. Fiat produces the Linea along with local producer, Tofas, and this year it has become country’s best selling cars beating its rivals from Renault, the Thalia and Fluence. Jan-Apr sales figures indicate that 8.710 units of this sedan (C-segment in Turkey) were delivered, up 13% in a whole market that drops 19%. Eventhough the good result, it is practically the unique successful model of the company as the Albea sedan (B-segment) is getting really old and its sales falling dramatically. Turkey is an important market that is expected to grow to interesting levels in the next years.

Fiat Linea interior

Source: Automotive News, FGA, Auto Esporte

by - 3 Comments

Jeep to arrive soon in India

Fiat has announced that is planning to introduce Jeep brand in India in the next months. After deciding to split operations with Tata, and have its own dealerships, it’s time for Jeep to arrive. According to Indian car website, Car Dekho, Jeep SUVs will have exclusive dealerships also and service to offer at the begining the Grand Cherokee, starting at $4.500.000 Rupies (US$82.000). The high price is explained as the car will not be produced locally. Anyway months later is expected the Liberty starting at $2.500.000 rupies (US$45.500). India is one of Fiat-Chrysler group’s target market to reach 6 million units by 2016. Last year the whole market sold 2,4 million cars, from which 11.1% were SUV, around 270.000 units, most of them (124.000) small SUVs followed by C-segment SUVs (103.000). It means SUV segment is India’s third largest one after A and B-segment. Besides, it is expected a continuos and rapid growth on total car sales for the coming year as most population (world’s second largest) does not have a car yet. Fiat Group’s World data base considers Jeep can sell around 10.000 units by the year 2016 based on future growth of the segment and new products.

by - 4 Comments

Suzuki to marry Fiat?

Big news are coming from India. After months of speculations about possible Asian partners for Fiat, Bloomberg news had announced today the possible alliance between Fiat and Suzuki. According to the site, after Fiat’s decision to split its sales operations from Tata, the situation is different now for Italians and their intentions to increase their presence in Asia. At the begining of May/12 Fiat decided to stop sharing car dealers with Tata for the sale of its Punto, Palio and Linea. At the same time, in Turin, Mr. Ratan Tata, Tata’s CEO, stoped being part of Fiat’s board after six years doing it. In the other hand, Suzuki is still fighting to get back the 20% of shares owned by VW, after some problems between them. In other words, both companies, Fiat and Suzuki, are not feeling comfortable with their current partners and after a divorce, a second marriage can be an option, especially in their case: they have working together since 2006 sharing engines and one model.

Fiat Sedici / Suzuki SX4. Photo by netcarshow.com

Fiat Sedici / Suzuki SX4. Photo by netcarshow.com

Certainly, Suzuki would be the perfect candidate for Fiat. It has an important presence in Asia, a continent where Fiat-Chrysler Group is pretty unknown. Italians know that for becoming really global, Asia must have an important place in terms of units sold. Last year, this continent represented just 3% of group’s global sales. By markets, India was the largest one for Fiat: 16.730 units sold (-23% year on year, and 0,7% of market share). Then comes Japan, where the small 500 is a bit popular: 13.425 units and 0,3% of market share. India represents 40% of Fiat Group’s Asian sales, while Japan 32%. Tiny presence in China, Southeast Asia and Korea. The opposite situation comes when looking at Suzuki’s numbers: more than 450.000 cars sold in Japan (is the best selling Kei cars brand) and 1 million in India with 41% of market share! They are also strong in Indonesia, and in China, where they sold around 300.000 cars in 2011.

Suzuki Maruti Ertiga. Suzuki's latest product in India, where they control 41% of the market

Suzuki Maruti Ertiga. Suzuki’s latest product in India, where they control 41% of the market

Those numbers would fit perfectly in Fiat’s idea of increasing its presence in Asia. It is with no doubt world’s most important market, but to get an important market share, a car manufacturer like Fiat needs big investments that would become easier to make with a big guy from the region. In the other hand, Suzuki needs to expand its business in other emerging markets such as Latin America, where its presence is marginal and where Fiat is strong. It is also important to mention that both companies would benefit from an alliance not only in terms of geographic fit but also in terms of core business: both are specialized in small cars and are very well known for the efficient city cars. This would allow them to share not only engines as they do now, but also future platforms and increase their offer in A, B and C segment. In other words, an alliance Fiat-Chrysler-Suzuki would generate a very important global player with big presence in world’s main markets: China, USA, Japan, India, Brazil and Europe. What are they waiting for?

by - 3 Comments

Fiat to sell directly in India

After 6 years of Joint Venture with Indian Tata, Fiat has decided to redefine some of the agreements with this important car maker. From now on, Italians will be in charge of their car sales and distribution with their own society. This will allow them to control in a better way the relationship with dealers and final customers and therefore increase their presence in India. Fiat and Tata have a Production and Distribution JV in India since 2006 but sales results for Fiat are not pretty good. In 2007 Italians sold 3000 cars, and 2 years later they jumped up to record of 23000 units of a range mainly composed by Fiat Linea and Punto, locally produced with Tata. But since that, sales have decreased dramatically and last year they delivered only 17000 units. Partly explained by the fact that Italians have not changed model range and Linea and Punto are losing market share because of the arrival of VW Vento (aka as Polo Sedan), Skoda Rapid, Hyundai Verna and Honda City.

India has become an important market thanks to its rapid growth and specially because of its total sales forecast for the coming years. Only 2.4 million people bought a new car during 2011 in a country with more than 1.1 billion, which means a New Car Ratio of  2 new cars per 1000 inhabitants (in USA, NCR is 41). These numbers indicate the high potential this market has and how important it is for all car makers to be there. Indian people love small cars. Therefore Indian A segment was world’s second largest after Japan and becomes a key segment for a A Segment key player such as Fiat. 41% of total market correspond to small cars, being Maruti-Suzuki ones the most popular. And close to it, comes B segment (Punto and Linea, among others) which counts 37%. These numbers confirm the importance of this market for a company like Fiat, whose market share could be stengthen by the arrival of a specific Panda/Uno for them.

A Fiat Caffè Dealership in India

It is my believe, that with this new step and its focus on new models, allong with its background making small cars, Fiat could reach 200,000 units, by the year 2016 in a market that will grow really fast. We will see.