Fiat plans to drift alone from the Fiat-Tata dealership alliance

It was predicted to happen a bit sooner with the declining trend in the sales of Fiat cars. However, there’s some great news that would delight future Fiat car owners and Fiat enthusiasts. Fiat India now has come to a decision of dumping Tata and drifting alone in India. Team ICB has been highlighting the treatment that Fiat buyers face when they enter a Fiat-Tata dealership outlet in order to buy or book their respective Fiat cars. This does confirm that the Fiat-Tata joint venture is doing more harm to Fiat than anything good.

Fiat India is planning to open dealerships in twenty cities in India in the next 12 to 18 months and is considering, on the whole, moving out from Tata dealerships. This move so far does appear to surface only on dealership front, although an official word is yet to come concerning about the overall collaboration coming to an end, in which the alliance does involve in technology and engine sharing polices between Tata and Fiat. The reason for Fiat wanting to exit its alliance with Tata completely makes no sense where Fiat would still be gaining a lot by supplying technology and engines to Tata that eventually increases their revenues in India.

Fiat plans to drift alone from the Fiat-Tata dealership allianceSo, what we gather through this breaking up of alliance is Fiat India is looking into possibilities of selling its products via independent dealerships belonging to Fiat. By doing so, we do expect Fiat sales to be hitting the high note in the coming years if this idea to sell through their own dealerships does happen. Fiat owners in the past have complained about ill treatment when going for a Fiat car via earlier dealerships, although no complaints have been recorded as to after-sale services rendered by Fiat-Tata workshops. Looking at this scenario, it’s a matter of time when Fiat’s going to clear their thoughts about exiting from the current Fiat-Tata alliance when it comes to service centres.

Considering all the above, it wouldn’t be surprising if Fiat decide to exit the alliance regarding after-sale services too when it plans to establish their own dealerships in 20 cities in India shortly. The after-sale service centre business offers better profits than dealerships face when it comes to sales outlets with dealers a bit pessimistic about handing over after-sale services to a new vendor. By the look of the situation here, the move by Fiat if any is a welcoming one in that it might change Fiat’s luck in India.

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