Fiat plans to split from Tata's distribution network
As per the sources, Fiat is soon going to set up its own distribution network in
India and simultaneously maintain its existing shared dealerships with Tata Motors. The prior goal of the Italian car maker is to expand the sales of its existing models with a secondary aim of launching the new models. Fiat presently shares its manufacturing facility with Tata at Ranjangaon in Maharshtra. The facility has to capacity to manufacture 200,000 cars and 300,000 engines of which, some are sent to Fiat plants overseas. The Italian carmaker currently manufactures Fiat Linea and Fiat Grande Punto at its facility. It is conjectured that the merger between the two companies which was signed in 2007 with Fiat's 40 dealers and Tata's dealer network of over 100 will be affected with the advancement of the Italian car maker. Talking of the present joint dealership it stands at 175 which is soon going to hit 200 dealers by the end of the year. Fiat has gained INR 22 crore as profit in the first quarter as against INR 166 crore loss for the same period, an year ago.
Fiat plans to split from Tata's distribution network