Fiat lines up SUVs, new models for bigger India play

Following its distribution break up with Tata Motors, Fiat India will launch cars in newer segments to expand its India market-share. It will also maintain its focus on the B and C segments where its Grande Punto and Linea are prominent.

For its solo journey, Fiat has an expanded product portfolio in mind, which will likely encompass sports utility vehicles (SUVs) as demand for bigger cars grows in India.

Enrico Atanasio, head-commercial, Fiat India, said: “There is growth in the SUV segment. The number of products from both Fiat and competitors will definitely increase the choice for customers. However, this does not reduce the importance of the B and C segments, which are expected to grow further.”

Fiat currently boasts big-size vehicles such as Fiat 500 L (compact 5- / 7-seater SUV which was showcased at the recent Geneva Motor Show; pictured above) and Fiat Qubo (5-seater multi-purpose vehicle or MPV) among its stable. These could well make it to the Indian market. Atanasio said even an India-specific Fiat product is within the realm of possibility.

The imaginative approach has been necessitated by Fiat’s declining sales as so far only two products in its existing portfolio were launched in the Indian market. In fiscal 2012, Fiat sold 16,073 units, down 23.87% on-year, which translates to just 0.7% market-share in India.

This the company aims to double in the next three years, Atanasio said. For, every automaker needs to have a clear product strategy and have presence in multiple segments.
Abdul Majeed, leader, automotive practice, PricewaterhouseCoopers, said that with competition growing and new segments emerging, it is extremely important for Fiat to have new products in the market.

“However, in order to ensure volumes, the company should continue to focus on the volume segments and have the right distribution strategy,” said Majeed.