Sunday, September 9, 2007

Fiat's big plans with smaller prices

Fiat, Europe's largest turn around company is all set to repeat it in India. Fiat has decided to start it all over in India with new models - Grande Punto and Linea - in the pipeline. An attempt to reclaim its forgotten glory. Carmaker has earned extremely negative image in their previous stint here, largely attributed to its co-relation with Premier Padmini's brand image. But it will not be fair to say that it all happened because of Premier Padmini, Fiat developed a poor name in after sales service and their cars too failed them when it came to reliability.

No matter what people say, Fiats have been driver's cars. They might have had too many failures in the form of Uno, Sienna, Petra and Adventure, but those who drive or who've driven the new age Palio understand what it is to be in a Fiat. Its cars, all over the world (unfortunately except India), have always been above par when it came to quality and technology. And the carmaker now seems eager to reinforce this in the minds of common people who've always fancied Japanese cars after the demise of "License Raj".

Come June 2008 and a new price war will be waged, this time not in the small car segment. The Italian giant plans to price its Grande Punto at par with the likes of Getz and Swift in the sub 5 lakh bracket, the Linea would give the Maruti SX4 and Honda City a run for its money at a Rs 6.5 lakh sticker price.

The aggressive pricing, thanks to close to 90% localization, would mean that all the Tifosi's out here in India will be fantasizing themselves replacing their gawky Japanese creatures.

Will Fiat earn its glory back? At least I'm positive about it. But, it will largely depend on how people here receive it.

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