Fiat will set up its own car dealer network in India, ends deal with Tata Motors

Article by Christian A., on May 3, 2012

Fiat could no longer use Tata Motors’ distribution network in India after they ended their distribution pact. In a joint statement, they said that a separate Fiat-owned company will now handle the distribution activities. Last February, Tata’s CFO C.R. Ramakrishnan said that its joint venture with Fiat wasn’t meeting the anticipated financial results or sales.

Since 2006, Tata Motors had been running the distribution of Fiat-branded vehicles in India with the use of 178 joint Tata-Fiat dealerships. Its dealers spread out in 129 cities will be urged to be a part of the foundation of Fiat's future network. In addition, the joint venture of Fiat and Tata includes the joint production of cars, engines and transmissions in Ranjangaon in the State of Maharashra.

Fiat had been assembling the Punto subcompact and Linea compact models at the plant since 2008. In the statement, it was also clarified that the production joint venture will continue to supply cars and powertrains to both Fiat and Tata.

The new 2012 Punto adds to Fiat’s tradition of creating revolutionary, best-in-class small cars. Focusing on the most competitive and active car sector, the 2012 Punto strengthens its well-earned standing as an elegant, modern supermini.

With a choice of three- or five-door versions, the new Punto comes with a larger selection of pleasing engines, features, and specifications than ever. Buyers can now fulfil their ever more challenging requirements for more eco- friendly, smaller cars that are affordable and easily maintained, but still comfortable, elegant, safe, and fun.

Simplifying the name to Punto meets the rationale for the new styling, with new exterior designs, colours, and alloy wheels and with new interior materials and colours and for the new innovative TwinAir engine.

You should not underestimate the new Punto’s significance. The supermini segment makes up almost a quarter of all new car sales, and there are about 30 European, Japanese, and Korean models all competing for a stake. Since its 1993 launch, the Punto has been leading with over 8.5 million in European sales. The new Punto was developed to increase sales while drawing in younger customers.

Its Pop, Easy, Lounge, and new GBT and TwinAir trim options echo this. The Pop option is meant to be alluring to customers looking for affordability without losing style. The interior features sophisticated denim seat inserts, and all models have daytime running lights and optional Blue&Me TomTom LIVE infotainment system.

Topics: ford, tata motors, india

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