Fiat India is shutting down their operations in the country. The company has decided to close down their operations for the Fiat company in the Indian market, and the parent company will be focusing only on their subsidiary company, Jeep.
India is going to move on the stricter Bharat VI emission norms in 2020, where Fiat is using 1.3-litre Multijet diesel engine for their cars. They also manufacture the same engines for various other brands in the country and outside the country as well. Tata and Maruti have already been moved on their own home-grown-engines and they are now capable enough to manufacture their own engines. In this case, shifting to a new platform and investing in a new manufacturing project would cost a lot for the Company.
On the other hand, Fiat’s own cars such as Fiat Linea and Grande Punto have seen a drastic fall in recent times. Compared to other manufacturers, Fiat-branded models don’t stand out in the competition. People have shifted to different brands by leaving the Fiat brand behind. This could also be one of the reasons behind the company’s shut down.
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Apart from this, the after sales services are also very poor and customers are not happy with the services provided by the company. This adds up more drawbacks to the company’s profile and their performances in the Indian market.
To revive the brand, the company has to invest for the new branded models of their cars, new engines and better after sale services for the new engines-based models. This would cost the company over USD 600 million. There’s no guarantee of receiving the money from the market as the competition in the automobiles industry is very high. There are brands like Maruti and Tata who are offering a range of cars for different types of consumers. People are actually happy with brands like Tata, Maruti, Hyundai etc.
Fiat has been in the Indian market for years. However, with older car models and old-generation engine types, the company has to call out their operations in the country. Even if they collect the money for investments, they will not get the good results in the market.
According to sources, the FCA is going to shut down the Fiats brand completely. The FCA is going to end an era of Fiat in the Indian market.