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Fiat to Launch Brand Stores without Tata

By Motortrend India Staff   |   20 October,2010

As its partnership with Tata Motors failed to yield desired results, Fiat is charting out a new strategy to turn around its fortunes. The Italian car major plans to open exclusive company-owned brand stores in major cities, apart from hiring a consultant to suggest revival path.


The brand stores would be an indirect way of starting its own retail format without involving Tata Motors, though the company has denied this. The stores will help in generating inquiries (and hence sales), with the aim of marketing Fiat cars.


Fiat has been a laggard in the Indian market, despite having competitive products like Punto and Linea. Alarmed, it is now taking steps to highlight the brand more aggressively, “something that will be done through the exclusive brand stores,” said Rajeev Kapoor, MD of Fiat’s India operations.


The company, which has seen sales fall 8 per cent in the first six months of this fiscal at a time when the overall car market boomed 34 per cent, will open the brand stores or image points at Delhi, Mumbai, Pune, Chennai and Bangalore. “These stores will display the real Fiat brand, and would be a place for meetings, a place for small gatherings and events,” Kapoor said. Fiat will also display its merchandise and accessories, which will also serve authentic Italian coffee.


The company, which has seen sales fall 8 per cent in the first six months of this fiscal at a time when the overall car market boomed 34 per cent, will open the brand stores or image points at Delhi, Mumbai, Pune, Chennai and Bangalore. “These stores will display the real Fiat brand, and would be a place for meetings, a place for small gatherings and events,” Kapoor said. Fiat will also display its merchandise and accessories, which will also serve authentic Italian coffee.


Fiat has also hired global consultancy firm Accenture to suggest ways to improve its position in India. “It will have a comprehensive look at our retail network in India and point out weaknesses and ways to address them.” Fiat and Tata Motors have a 50:50 joint venture, Fiat India Automobiles.



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