Tata- Fiat restructures sales and distribution agreement

Thursday 10 March 2011, 00:00 AM by Vikas Yogi

Tata-Fiat, an cooperation between Indian auto giant Tata and Italian Fiat Spa, is working on restructuring its sales and distribution network in the Indian market. The move has been taken in a bid to improve the sales of Fiat brand cars along with strengthening Fiat's brand position in the Indian market.

According to the existing arrangement, both of the companies sell their new cars from same dealership network, under same roof. The new strategy is expected to change this set-up as Fiat looks to strengthen and promote its brand through a separate network and dealerships.

Tata- Fiat restructures sales and distribution agreement | CarTrade.com

According to a recent statement given by Rajeev Kapoor, president and chief executive at Fiat India, there could be separate showroom areas for Fiat while the dealerships will remain common, on account of space constraints within the existing dealerships. He however maintained that nothing has been finalized till now.

While further elaborating the problems occurring in the existing arrangement, “We are evaluating whether it’s possible to extend the existing area within the same set up. There are some which do not have the scope of further expansion and, as such, will have to procure another showroom. Everything is being worked upon and there is no common formula.”