(WM)FIAT INDIA AUTOMOBILES PRIVATE LIMITED

A

Report on Joint Stock Company

On

Fiat India Automobiles Private Limited.

Submitted to

MBA Department

By

AKSHAY JALINDAR TAWARE

DHIRAJ BALKRISHNA PAWAR

PRASHANT TRIMBAK TAMHANE

Under the guidance of

PROF. MISS. POONAM DHAWALE

B.COM,MBA(FINANCE)

S.V.P.M’s

INSTITUTE OF MANAGEMENT,

MALEGAON(BK), Tal.BARAMATI, D.PUNE.

(YEAR 2016-17)

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ACKNOWLEDGEMENT

We would like to thank the almighty for his constant grace showered on us and his increasing gift of knowledge and strength that has relentlessly prevailed our life through the entire project work.

It was such an honor and privilege for us to collect information for the companies and share with the class. We would have not completed our project without their immense help and co-operation.

We acknowledge our sincere thanks to PROF. MISS. POONAM DHAWALE for her guidance that made us this project materialized. Finally, we are also thankful to our parents and friends for their encouragement and support.

We would like to thank Dr.S.S.JADHAVDirector S.V.P.M’s Institute Of Management for the exposure and support provided during the project.

Name of Students: Signature of the Students

1.AKSHAY JALINDAR TAWARE

2.DHIRAJ BALKRISHNA PAWAR

3.PRASHANT TRIMBAK TAMHANE

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INDEX

Chapter No. Chapter Name PAGE.NO

1 INTRODUCTION OF PROJECT

5-6

2 HISTORY OF COMPANY

7-11

3 ORGANISATION CHART

12-16

4 PRODUCT PROFILE 17-21

5 MARKETING MIX 22-24

6 SERVICE 25-27

7 PROMOTIONAL STRATEGIES

28-31

8 BIBLIOPRPHY 32-33

9 CONCLUSION 34-35

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CHAPTER – 1

INTRODUCTION OF A PROJECT

INTRODUCTION OF A PROJECT

4

We are going to take an Enterprise Desk Research report on Fiat S.p.A., or FabbricaItalianaAutomobili Torino (Italian Automobile Factory of Turin), was an Italian holding companywhose original and core activities were in the automotive industry, and that was succeeded by Fiat Chrysler Automobiles NV (FCA). The Fiat Group contained many brands such as Ferrari, Maserati, Fiat, Alfa Romeo, the Chrysler Group, and many more. On 29 January 2014, it was announced that Fiat S.p.A. (the former owner of Fiat Group) was to be merged into a new Netherlands-based holding company Fiat Chrysler Automobiles NV (FCA), took place before the end of 2014. Fiat Chrysler Automobiles became the new owner of Fiat Group.On 1 August 2014, Fiat S.p.A. received necessary shareholder approval to proceed with the merger (which followed board approval).The merger became effective 12 October 2014.

Fiat was founded in 1899 by a group of investors, including Giovanni Agnelli. During its more than century-long history, Fiat has also manufactured railway engines and carriages, military vehicles, farm tractors, and aircraft. In 2013, Fiat (together with Chrysler) was the second largest European automaker by volumes produced, and the seventh in the world ahead of Honda, PSA Peugeot Citroën, Suzuki, Renault, and Daimler AG.

Over the years, Fiat has acquired numerous other automakers: it acquired Lancia in 1968, became a shareholder ofFerrari in 1969, took control of Alfa Romeo from the Italian government in 1986, purchased Maserati in 1993, and became the full owner of Chrysler Group LLC in 2014. Fiat Group currently produces vehicles under twelve brands:Abarth, Alfa Romeo, Chrysler, Dodge, Ferrari, Fiat, Fiat Professional, Jeep, Lancia, Maserati, Ram Trucks, and SRT.

In 1970, Fiat employed more than 100,000 in Italy when its production reached the highest number, 1.4 million cars, in that country.As of 2002, Fiat built more than 1 million vehicles at six plants in Italy and the country accounted for more than a third of the company's revenue.[7]

Fiat-brand cars are built in several locations around the world. Outside Italy, the largest country of production is Brazil, where the Fiat brand is the market leader The group also has factories in Argentina, Poland and Mexico (where Fiat-brand vehicles are manufactured at plants owned and operated by Chrysler for export to the U.S., Brazil, Italy and other markets) and a long history of licensing manufacture of its products in other countries. It also has numerous alliances and joint ventures around the world, the main ones being located in Serbia, France, Turkey, India and China.

GianniAgnelli, the grandson of founder Giovanni Agnelli, was Fiat's chairman from 1966 until 1996; he then served as honorary chairman from 1996 until his death on 24 January 2003, during which time CesareRomiti served as chairman. He was succeeded briefly by Paolo Fresco, who served as chairman, and Paolo Cantarella, as CEO.UmbertoAgnelli then took over as chairman from 2003 to 2004. After Umberto Agnelli's death on 28 May 2004, Luca Cordero di Montezemolo was named chairman, with Agnelli heir JohnElkann becoming vice chairman (at the age of 28), and other family members also serving on the board. On 1 June 2004, Giuseppe Morchio was replaced by SergioMarchionne as CEO.

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CHAPTER – 2

HISTORY OF A COMPANY

HISTORY OF ACOMPANY

6

FIAT was founded

On 11 July 1899 at Palazzo Bricherasio, the company charter of Società Anonima Fabbrica Italiana Automobili Torino (Italian Automotive Factory in Turin) was signed. Among the members of the Board of Directors, Giovanni Agnelli stood out in the group of investors and won recognition for his determination and strategic vision. In 1902 he became the Managing Director of the company.

1912-1925The Lingotto factoryIn 1916 the construction of Lingotto started under the direction of Giacomo Mattè Trucco. The Factory, the largest in Europe, occupied five floors and had a futuristic test track on the roof. It soon became the emblem of the Italian automotive industry and was completed in 1922.

1926-1938Falling back on the domestic marketDuring the years of Mussolini’s autarchic policy, Fiat too had to rescale its plans for international presence and concentrate on the domestic market. In the Thirties trucks and commercial vehicles underwent considerable technological development and at the same time the aviation and railway sectors grew.

1939-1951

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Second World WarDuring the war years there was a drastic reduction in the production of cars, while the construction of commercial vehicles increased considerably.

1952-1964DieselIn 1953 the first Fiat diesel engined vehicle was presented, the 1400 diesel.

1965-1977DINO CoupéAnother Fiat exhibit at the 1967 Geneva Show was a closed version of the Dino- a four-seat Coupe designed and produced by Bertone. The mechanical specification was identical with what of the Spider, buy the wheelbase was longer.

1978-19908

The Robogate systemIn 1978 the “Robogate” system was created, the new flexible robotized system for assembling the bodywork. It was the road to innovation and the automation of production.

1991-2003The new cars of the 1990sAfter the debut of the Fiat Tempra in 1990, the 500 came out in 1991. Two years later, in 1993, it was the moment of Fiat Punto (named “Car of the Year” in 1995) and Fiat Coupé, with bodywork designed by Pininfarina and Centro Stile Fiat.

2004-20079

The restyling of the logo on Fiat IdeaFiat Idea was the first MPV created by Fiat but also the first car with the task of communicating the brand’s new 'mission': Fiat Idea displayed the round logo, renewed and proposed by Centro Stile Fiat to evoke the emblem designed to celebrate the Company’s 100th Anniversary.It was also meant to get across the most significant change in Fiat car design: more attention to high-

tech content and intelligent solutions designed to simplify several aspects of daily life in the car.

2008-2013Twin Air–revolutionary technologyIn July 2010, Twin Air-the first of a new family world’s high tech two-cylinder engines made by FPT-Fiat Powertrain Technologies waslaunched through Fiat 500 model.This technology implements the revolutionary MultiAir system combined with specific fluid dynamics optimised for maximum fuel efficiency. Furthermore,by taking the concept of downsizing to the extreme and masterfully tuning the basic mechanics, the new Twin Air engine family-delivering from 65 to 105 HP-emits 30% less CO2 than an engine of equal performance.

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CHAPTER – 3

ORGANISATION CHART

ORGANISATION CHART

From an operational perspective, the CEO is supported by the Group Executive Council (GEC), a decision-making body led by the CEO and composed of the heads of the operating sectors and certain central functions.

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The GEC is composed of 4 main groupings: regional operations, brands, industrial processes, and support/corporate functions.

The first consists of 4 Regional Operations Groups for car manufacturing and sales, plus Automotive Components (mainly Magneti Marelli) and Systems and Castings (Comau and Teksid). A Chief Operating Officer (COO) is responsible for driving each organization via a regional Management Team. The COOs are accountable for the Profit and Loss of their region/business and management of regional resources, including manufacturing and commercial activities.

Chief Operating Officers

SergioMarchionne

Chief Executive Officer

NAFTA EMEA

Alfredo Altavilla Stefan Ketter

LATAM APAC

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Michael Manley Richard Palmer

Systems and Castings (Comau and Teksid)

Pietro Gorlier

Components (Magneti Marelli)

The second grouping reflects the Group's focus and emphasis on its brands. Each of the global or potentially global brands is represented within GEC through Brand Leaders who are responsible for continuous improvement and development of appropriate brand portfolios, as well as implementation of adequate commercial and marketing strategies in each operating region.

Brand Leaders

Chief Marketing Officers

Olivier François Reid Bigland

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Head of Alfa Romeo/Maserati Parts and Service(MOPAR)

Michael ManleyOlivier François

Timothy Kuniskis

Head of NAFTA Passenger Car Brands

The third grouping is composed of Industrial Process Leaders, who are responsible for managing industrial processes across operating regions, as well as optimizing the Group’s capital allocation.

Harald Wester

Chief Technology Officer

14

Ralph GillesStefan Ketter Scott Thiele

Design Chief Manufacturing Officer Chief Purchasing Officer

Scott GarberdingBob LeeMark Chernoby

Head of Quality Powertrain Coordinator Chief Technical Compliance Officer

The final grouping is composed of Support Process Leaders

Richard PalmerLinda Knoll Alfredo Altavilla

Chief Financial OfficerChief Human Resources Officer Business Development

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CHAPTER – 4

PRODUCT PROFILE

PRODUCT PROFILEFCA India Automobiles Private Limited(FCAIPL) formerly known as Fiat Group Automobiles India Private Limitedwas formed in the year 2012 as a fully owned direct subsidiary of FCA Spa Italy. The new company was established to operate like a National Sales Company (NSC) for selling FIAT & JEEP make of cars in the Indian market with no direct involvement

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in vehicle & powertrain production activity. It is the ninth largest Indian car manufacturer by sales in India.

FIat has a manufacturing plant at Ranjangaon, Maharashtra, which has an installed capacity to produce 135,000 cars and engines, besides aggregates and components. The company plans to double the production capacity for both car units and engines in the next few years. The car plant manufactures both Fiat and Tata cars, the latest additions in this year (2014) are the Fiat Linea facelift, Fiat Punto Evo, Tata Zest and Fiat Avventura. Engine manufacturing at Ranjangaon plant was the 1.2 litre Fire petrol, the 1.4 litre Fire naturally aspired and turbocharged version and the small 1.3 litre Multijet diesel.

Fiat's built their five-story Lingotto plant in 1915 through 1918, at the time it was Europe's largest car manufacturing plant. Later the Mirafiori plant was built, also in Turin. To prepare for production of the all new Fiat 128, Fiat opened their Rivaltaplant in October 1968. Until the 128 could enter production, the plant was used to build sports versions of the 850 and 124as well as parts for the Fiat Dino.

Fiat's 2014 range of passenger car engines comprised eleven units, eight petrols and three

diesels.Their current range of models is the following:

Fiat Punto

Fiat has invested for a long time in South America, mainly in Brazil (where has been the market leader for many years) and in Argentina. They built their first Brazilian car plant in the Greater Belo Horizonte city of Betim in 1973, after having begun by building tractors there.[8]

Recently a brand new model developed in Brazil has been launched: the Fiat Uno.

Other European models are currently imported to Brazil: Fiat 500, Freemont. Some others are still in production: Punto,Idea, Bravo, and Linea.

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Fiat Uno

Fiat Linea

FCA India Automobiles Private Limited(FCAIPL) formerly known as Fiat Group Automobiles India Private Limitedwas formed in the year 2012 as a fully owned direct subsidiary of FCA Spa Italy. The new company was established to operate like a National Sales Company (NSC) for selling FIAT & JEEP make of cars in the Indian market with no direct involvement in vehicle & powertrain production activity. It is the ninth largest Indian car manufacturer by sales in India.

Fiat Palio

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The Fiat Palio is a supermini designed by Fiat as a world car, aimed at developing countries. The Palio Weekend is a small family car station wagon; an extended version of the hatchback Palio

Fiat Siena

The Fiat Siena is the four-door sedan version of the Fiat Palio, a small family car especially designed for developing countries. The car is similar to Fiat Albea.

Fiat 500L

Fiat Freemont

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A-segment - Fiat 500

The Fiat 500 (Italian: cinquecento, Italian pronunciation: [ˌtʃiŋkweˈtʃɛnto]) is a car produced by the Fiat company of Italy between 1957 and 1975, with limited production of the Fiat 500 K estate continuing until 1977. The car was designed by Dante Giacosa. Redesigned in 2007, it is currently distributed worldwide.

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CHAPTER – 5

MARKETING MIX

MARKETING MIX

When Fiat took over marketing its cars from private importer Ateco, a handful of dealers sold a handful of cars. Now that Fiat has set its sights on increasing sales in Australia, the company realises that having more dealers is the key to success. Dealers, often well-known figures in their

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local communities, bring in customers from the area. As long as dealers have appealing stock, and plenty of it, customers will come in, take test drives, buy, and spread the word.More Fiat DealersFormer managing director Clyde Campbell announced that Fiat would expand its dealer network from 16 to 52, by building on the base of Chrysler and Jeep dealers who would add Fiats (and Alpha Romeos) to the mix. The reasoning was that customers didn’t want a service centre to be more than 12 minutes away, or a new car dealership to be more than 30 minutes away. With only 16 Fiat dealers in the whole country, that meant 87% of Australians were outside of those parameters.

More FiatsHaving more dealers greatly increases convenience, and makes shopping Fiat a more viable option. However, until recently, Fiat Australia had a meagre variety of products to offer. Models that were strong elsewhere in the news never made it here. Recognising that poor model selection would win neither loyal customers nor dealers wanting to sell them, the company has upped the ante by releasing several new models here. Just a year ago, only the 500 was on sale in Australia; now the line up includes the 500, 555C, the Abarth, the Freemont, the Panda, and the Punto.

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Better PricingTo encourage dealers to promote the new cars, and to encourage customers to buy them, Fiat has cut prices across the board. Models of the new Fiat Freemont, very similar to the Dodge Journey, have a driveway price of $27,000 - nearly $14,000 less than the Journey. Even the entry-level Base is packed with features. Other cars in the line up offer similar value.Better ServiceTo complement the greater availability of well-priced cars, Fiat now has a major parts warehouse and service centre at Port Melbourne. Dealers who offer service, and sell parts, will have a ready supply of what they need in stock, or a day’s shipping away. Dealer and customer service issues can be solved with a simple phone call within the country.Both Fiat dealers and their customers will benefit from the new corporate marketing strategy of offering variety, value, and service. Visit your Fiat dealer today for a great deal.

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CHAPTER – 6

SERVICE

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SERVICE

THEFIAT

SERVICEPROMISE

Repair qualityEach and every repair is carried out to strict Fiat quality standards, and certified by a separate final quality check.

Time complianceWhenever we make a booking to repair or maintain your vehicle, we do so having made the necessary preparations to respect the quoted delivery deadline.

Vehicle inspectionYour car will be checked in your presence to verify its overall status, and no scheduled repair or additional work will be commenced without prior explanation and consent.

Transparency of informationAll work conducted will be fully explained to you to ensure your understanding and satisfaction.

Professionalism and expertiseNo one is better equipped to maintain your Fiat. Our technicians are trained and certified, and backed up by the technical knowledge of the whole Fiat organisation.

Client serviceDetailed information regarding our products and services, our dealer network and authorised service workshops can be accessed through our dedicated Fiat Customer Call Centre. This can be reached via our 24 hour toll free number or email.

Toll Free Number1800 209 [email protected]

Total peace of mindEach new Fiat is built to the highest possible standards. We put every car through a series of tough tests, checks and inspections before it leaves the factory. Then, from the moment you drive your new car away, your car is protected with a three year warranty* giving you a total peace of mind.

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Road side assistance

What is road side assistance?

Road side assistance is a 24x7 roadside emergency service available for Fiat vehicles. It is a service provided in the event of a Fiat vehicle getting immobilized due to breakdown or due to road accident. It offers a 36 month coverage from the date of sale of a new vehicle. It provides on the spot vehicle assistance and towing facility to the nearest Fiat dealer.Covered events & benefits include:

o Breakdown/accident - roadside repair or vehicle recovery.o tyre related - puncture, bolt/valve related issues.o Battery related - dead battery - jump start.o Key related - locked Keys, lost keys or broken keys.o Fuel related - out of fuel, incorrect fuel.

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CHAPTER – 7

PROMOTIONAL STRATEGIES

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PROMOTIONAL STRATEGIESThe Fiat Group was founded in 1899 in Turin, Italy, and now consists of many diversified businesses such as automobile manufacturer, engine manufacturer, agricultural and construction equipments, trucks and commercial vehicles, components and production systems, publishing and communication as well as financial services (The Fiat Group 2010). Diversified businesses also mean less risk because the businesses are financially and operationally leveraged. However, The Fiat Group focuses mainly in automobile sector, and this is not to mention that the world's famous brands like Alfa Romeo, Maserati and Ferrari are entirely owned and managed by The Fiat Group; this has exclusively enhanced Fiat's automobile portfolio in terms of brand's strength, value and equity. Fiat carries out its businesses through its subsidiary companies located in over 50 countries while majority of its plants, employees, and R&D is based in Italy and Europe (The Fiat Group 2010). In battling for market share against major global competitors, Fiat has recently entered into mutual strategic alliance with Chrysler, with Fiat holding 20% of the shares. This provides both sides many complementary advantages. For instance, Fiat immediately gains unlimited access to Chrysler's extensive North American dealer network, and therefore can save huge production cost by using Chrysler's plants to produce its models for North American market. Chrysler also gains Fiat's global distribution network in reciprocal while also being provided with shared knowledge in engine technology and the know-how of building small and fuel-efficient vehicles.

One of the Fiat's fleets that this paper will place an emphasis on is the Fiat 500 model. The first original model of Fiat 500 was launched back in 1957, namely the Nuova 500, and it was positioned as an economical and cheap city car. Having seen the success posed by Volkswagen-Beetle and Mini, the retro model of the new Fiat 500 was revealed to the public in 2007, exactly 50 years after its first model. The classic feel and physical look was still largely remained but with new added features, functions, modern designs, technology, etc, all of which that fits contemporary world's demands. Like Volkswagen-Beetle and Mini, Fiat 500 is the second generation of the original model that intends to make a big come back and change consumers' perceptions in many better ways. Literally, the objectives of this paper aim to critically evaluate Fiat's approach to marketing strategy for Fiat 500 as well as to outline an effective marketing communication plan as it enters the market.

Fiat 500 aspires to replicate both Volkswagen-Beetle and Mini's strategy in introducing the second generation model of what was once thought to be the "all-time classic model" many centuries ago. In going about reintroducing, one of its main strategies is driven by a campaign known as "500 Wants You" which uses online marketing as its main vehicle to reach the market. The 500 model is driven by strategic philosophy as "the car of the people, by the people" (Weenen 2007). Fiat uses digital technology to achieve its goals by encouraging and inviting

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people, in an open community, to become involved and participated in ideas generation for redesigning the car; obviously, this is how Fiat establishes and creates values, beliefs, and passions of those who become involved in the process. Through www.500wantsyou.com website, over 3 million enthusiasts have submitted their ideas and opinions to the project of redesigning the car (Weenen 2007). The initiative democratically reflects that voices of customers are important in Fiat's strategy, which in parallel, aligns with the generic marketing philosophy that emphasizes the centrality of customer's voice. For a firm to remain in business profitably, customer-centric or customer satisfaction must be stressed (Lancaster & Massingham 1999). Applying Kotler and Keller (2009)'s framework into place, Fiat 500's value proposition is the retro-model of a small city car that offers sensation of original classic look with enhanced engine, innovative features, functions, designs, and convenience that fit consumers' needs in today's world.

Taking into consideration, "marketing" simply focuses on satisfying customer needs and aims to make selling unnecessary (Kotler, Armstrong, Wong & Saunders 2008). The more intellectual definition of marketing is defined as, "process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return" (Kotler, Armstrong, Wong & Saunders 2008, p.7). The analysis of Fiat's approach to marketing its new 500 can be looked at 2 different environmental-driven forces: the internal and the external. Applying Porter (1980)'s generic strategy looking at external environment, Fiat uses differentiation approach to market its 500 product. According to Carpenter and Sanders (2009, p.174), "Differentiation refers to a general condition of perceived product 'uniqueness' that causes customers to be willing to pay premium prices", and it can be sustainable if differentiation is uniquely based on quality, service, and reliability (Murray 1988). Fiat places its emphasis on quality, uniqueness, and not so much on mass production (Davis 2009). In differentiating its products from competitors, Fiat 500 sharply defines its market boundary to be within the small premium car segment, with affordable price, and appeals specifically at the newer generations, young, hip, and modern people who have aesthetic taste, and whose lives are energetic, adventurous, and full of excitement. Carpenter and Sanders (2009) state that key differentiation advantages drivers are only feasible through unique styling, extraordinarily high quality, customization, and value-appealing to prospects. As clearly seen, the design of Fiat 500 is modern, unique, eyes-catching, and at the same time creates value-appealing to its target customers. Even so, one of the Fiat's differentiation approaches in creating differentiated product is the online marketing that it uses. Not does the website only allow participants to become interactively involved in product design and idea generation but also allow target buyers to foresee what their cars will look like. The website offers real-time inventive and customized functions with different designs and features of the car. With over 500,000 various ways to tailor the car (Davis 2009), this sets Fiat apart from other competitors in terms of operational and design flexibility. The website, standing on its own, has an entire separate community of people who are true fellows, existing customers as well as potential customers of the Fiat 500. Within

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the community, people can share ideas, feedbacks, and advises regarding the product as well as set up free chat-rooms for discussion.

Looking internally, Fiat's resources and capabilities are the main driving forces that help it get to its projected positioning of being differentiated. Reiterating Barney's (1995), the wise use of internal resources and capabilities that create sustainable competitive advantage can only be apparent if they are valuable, unique, and rare. By implication, implementing a strategy which is not being implemented by others and is hard to imitate can bring sustainable competitive advantage to a firm (Barney 1991). Given the strength of Fiat's brand within Europe, Fiat is believed to have achieved sustainable competitive advantage given its unique product design, valuable and rare approach of interactive online marketing which has attracted over 3 million enthusiasts to become involved in the process of redesigning the car.

Based on Treacy and Wiersema (2000)'s framework, there are 3 important disciplines for a firm to become a market leader: customer intimacy, operational excellence, and product leadership. Formerly, customer's value lied on the basis of product's price and quality; today, the expanded concept of customer's value is something no more, arguably, than these emerging disciplines that a firm must possess (Treacy & Wiersema 2000). The context of customer intimacy involves the ability for a firm to offer tailored products to its various customers who may be in different segments and have different needs and desires whereas operational excellence refers to concentrating on operational efficiency while providing reliable products to customers at competitive prices (Treacy & Wiersema 2000). Treacy and Wiersema (2000) further continue that product leadership involves providing products that are innovative, which help keep a firm away from battling intensively against other rivals while making their products obsolete. In summary, firms must define what their customers' values are, build cohesive business system to deliver the expected values, and ensure that customers' expectations are over-achieved.

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CHAPTER – 8

BIBLIOGRAPHY

BIBLIOGRAPHY31

1."Fiat India". Fiat India. Retrieved 2010-08-02.

2. http://economictimes.indiatimes.com/industry/auto/news/passenger-vehicle/uv/maruti-to-source-1-6-litre-diesel-fiat-engine-for-s-cross-developing-own-1-5-litre-engine/articleshow/47611088.cms. Missing or empty |title= (help)

3.http://www.livemint.com/Companies/vQNIluEPZECxpsLAj2Oz2J/Fiat-to-power-Premier8217s-Rio.html. Missing or empty |title= (help)

4. "Fiat India automobiles sales growth of 78% in Feb 2010". Moneycontrol.com. Retrieved 2010-08-02.

5.bsmotoring.com (2010-03-16). "Fiat eyes to double sales this year". Bsmotoring.com. Retrieved 2010-08-02.

6. "Fiat targets sales of 130,000 cars". The Hindu Business Line. 2010-04-23. Retrieved 2010-08-02

LINKS-

1.Fiat India Automobiles Limited

2.Fiat Automobiles S.p.A.

3.Fiat Group

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CHAPTER – 9

CONCLUSION

CONCLUSIONIn the part of conclusion we can say Fiat brand in India was earlier represented through a Joint Venture company called Fiat India Automobiles Pvt Ltd., FIAPL (Name changed to Fiat India Automobiles Ltd., FIAL later) founded in the year 1997 with Fiat S.p.A (Italy) andTata

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Motors as the two partners coming together to produce cars for both brands in a plant set up through joint investments at Ranjangaon, in Pune district ofMaharashtra. The board of directors for this company comprises five nominees each from Fiat and Tata.[1] Another key interest area for the Tata-Fiat JV is the production of the famous 1.3 Multijet Engine (which won World Engine of the Year Award 2005) & corresponding powertrains common to a number of both the Tata & Fiat brand cars in India namely – Fiat Palio, Fiat Grande Punto, Fiat Linea, Tata Vista & Tata Manza.[2][3]

Even today the Tata Fiat JV plant operates under the FIAL name, as an independent entity and it produces Fiat & Tata brand cars for FCAIPL (Fiat India NSC) & Tata Motors respectively. The company presently employs about 2600 employees. It also undertakes contract manufacturing of engines for Maruti Suzuki India Ltd & Premier Automobiles. Premier Automobiles uses this engine for their compact SUV Premier Rio and the Suzuki cars that used Fiat Multijet engines in Indian market include – Ritz, Swift, Swift DZire, SX4 & Ciaz, S-Cross, Brezza.

Prior to this, Fiat used to sell the 1100, 124 and Uno in India, manufactured under licence by Premier Automobiles Limited.

FIAT sold 23,551 vehicles in 2009 and registered an increase of 241% compared to the previous year sales which stood at 6,897 vehicles .It plans to sell 130,000 cars annually in India by 2014.

While examining the future scope of FIAPL we can say or we can comment that FIAT company has wide scope of business and it is growing rapidly with regular up-gradation followed with continuous R & D in their products. After some research we found that FIAT India launching their next SUV model (name not disclosed yet) in the year 2017.

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