Fiat to open 20 standalone outlets, 2 Fiat cafes

Fiat-Tata joint venture has felt a slight jerk as Fiat decides to sell its cars through separate showrooms in India. Fiat India and Tata Motors were engaged in a joint venture since 2007, wherein both the parties were looking at each other’s distribution network and back-end support system by selling their cars under the same roof.

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Rajeev Kapoor, President and CEO of Fiat India while speaking at the annual summit of Automotive Component Manufacturers Association's (ACMA) on Tuesday, intimated that Fiat is setting up its own showrooms in around 20 cities across the country. In the next one and a half to two years, Fiat will work extensively to launch its separate and independent showrooms. Kapoor adds to the knowledge that the company envisages to enhance the brand value of Fiat. To bring this in effect, Fiat will also open two Fiat cafes, one each in Delhi and Pune and bring a taste of Italian-ness in India.

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The decision came after examining the sales of Fiat cars. In the month of August Fiat managed to sell just 1,069 cars, whereas 16,829 Tata cars were bought by consumers. The relationship had come into question as Fiat cars were unable to attract sales. Even the Chairman of Tata group, Ratan Tata in an interview mentioned that rethinking has to be done about the joint venture to optimize the potential. Besides sharing sales procedure the duo were also co-manufacturing products at Tata's Ranjangaon facility, near Pune.