Tata Motors is now planning to follow the footsteps of Maruti dealerships. Tata will make best use of its tie-up with Fiat by using its products to push the sale of its own products. This is the same policy that was adopted by Hindustan Unilever when Maruti introduced the Alto and WagonR with Zen in the B segment.
According to their plan, Tata Motors is thinking of promoting its new Indica in the compact market using Fiat’s Grande Punto and 1.3-litre diesel Palio Stile. Tata Motors claimed that it tied up with Fiat with an intention of having multiple products in the big volume segments. As a result, Grande Punto and Palio will run alongside the Indica in the B-segment offering options cutting across a diesel and a gasoline engine.
Since the Fiat models always command a premium, Tata is expected to distinguish between its own products and the positioning of Fiat vehicles by using the price and branding strategy.
Tata Motors is currently exploring all possibilities to make this plan a grand success in India so that they can implement the same in their other segments in days to come. Tata and Fiat are working closely to develop this new branding strategy and ensure it success.