Fiat Auto, in a move to recuperate from the unimpressive performance in India, is expected to reshuffle the senior level officials in Fiat India. There is a strong possibility that the car maker would make an announcement regarding the management change by the end of 2011.
The Italian car manufacturer seems to be disturbed by the way its operations are being conducted in the country. Moreover, the company has already expressed great concern over the handling of its marketing and after sales by Tata Motors in India. Fiat Auto re-entered the Indian auto industry in the form of a joint venture with Tata Motors. As per the guidelines of the joint venture, Tata Motors was completely responsible for carrying out marketing and after-sales services of Fiat vehicles in India. But, over the years, Fiat Auto India has realised that its customers have been giving unfavourable feedback regarding after-sales services.
However, Fiat did not intend to directly put Tata Motors under fire, for its unsuccessful mission of increasing the business of Fiat cars in Indian car industry. At the outset, Fiat Auto has taken the operations within its ambit. It has come as a surprise for the car maker that despite the steady growth in the Indian automobile market, its efforts for betterment of Fiat Auto sales has resulted in a fiasco.
Fiat Auto India would now be functioning solely in the marketing and sales department. However, the joint venture with Tata Motors over the production operations would continue in the same way. The Italian car maker is also sincerely mulling upon opening its own showrooms in various parts of India. Fiat is even expected to inaugurate Fiat Caffe in major cities of the country.
Fiat Auto's sales figures suffered a nosedive as its 29.14 per cent share of the month's total sales, fell quite short of the company's 30 per cent benchmark figure.
The abysmal performance has posed tremendous challenges in front of the car maker, especially in Europe. The recent ouster of Fiat's Sales Chief, Andrea Formica, who had the region under his control, has proved that the company is indeed in troubled waters.
On the basis of the first six months sales of 2011, Fiat group has emerged as the weakest contender among Europe's top six auto makers. If analysts are to be believed, Fiat has to get over with its limping performance as soon as possible, in order to regain the lost ground.
