Fiat plans 20 elite dealerships in 2012

Fiat India is planning to setup its individual dealership network in the country that is free from the shadow of Tata Motors. This Italian car maker is finally making its much expected and awaited move of opting for individual distribution of its cars. The joint alliance with Tata Motors didn’t quite work out at the dealership level as the normal salesperson encourage the consumer to buy Tata cars instead of Fiat. The carmaker has revised its vehicles since last year and so far it isn’t planning to launch any new products. Now Fiat is concentrating on making the buying experience for the consumer much better than before. Right now, Fiat cars are being sold via Tata-Fiat dealerships, but the dealership isn’t doing any justice to Fiat vehicles that are on its portfolio for the Indian car marker.

Therefore, Fiat Motors is now focusing on launching its independent dealership that could go 20 in number in main cities by the end of this year. So, no more Fiat cars will be sold at Tata –Fiat dealerships. On the other hand, in small towns and cities, Fiat will carry on selling its products at the Tata-Fiat dealerships. Right now, Fiat is trying to promote the dealers to open up exclusive Fiat showrooms and is also taking into consideration to increase the dealer margin to 8.5% from 5%.  Opening of individual dealership by Fiat will not end the collaboration of Tata Motors and Fiat as Fiat supplies its Multi jet engine technology to Tata Motors and in return Tata Motors handles the manufacturing process of Fiat cars in the country.