Fiat India confirms total dissociation with Tata Motors from sales operations by March next year

After announcing the dissolution of the alliance with Tata Motors, Fiat India Automobiles Ltd, the Italian automaker is devising plans for a full-fledged takeover of its sales and distribution system in the country. The process of separation is scheduled to be accomplished by March 2013 with the mission of opening of 80 outlets for the Indian buyers.

In the month of May this year, the car maker expressed its desire to go solo by amending its joint venture with Tata Motors while proposing to independently rule the sales and distribution pattern and strategies. At present, Fiat badged cars are available for sale at the 174 Tata-Fiat branded showrooms branched in 126 cities in India. Alongside, the company has also embarked the staffing process of over 100 people for direct interaction with the prospective buyers and the Fiat customers in India.

Mr. Ravi Bhatia, Vice-President (Commercial), Fiat India Automobiles Ltd., said, "We have a revival plan for Fiat in India. For that it is important for us to complete the timely realignment of distribution network. By March 2013, the no Fiat car will be sold under the existing Tata-Fiat joint dealerships."

He further affirmed that both the companies have however, agreed for the joint ownership of the car and diesel engine production operations.

Mr. Bhatia also mentioned, "By March next year Fiat will have presence in 67 cities under our own dealerships and we will make up for the rest by the December 2013."

While for the month of August this year, the sales of Fiat in the Indian auto market took a deep dive of a substantial 55.85 percent, the company is anticipating to soon stabilising the sales trend by focusing greater on brand building.