Chrysler to piggyback Fiat

After having acquired the American automobile major Chrysler Motors, Fiat is contemplating on introducing Chrysler to India. While the alliance has helped Chrysler come out of bankruptcy, it is Fiat’s responsibility to bring in revenues.

And revenues mean selling more Chrysler Cars. This can happen when Chrysler is able to successfully penetrate into more developing markets. Fiat plans to piggy back on emerging economies such as India and China for the success of Chrysler models.

Fiat, now an experienced auto maker to have tasted Indian waters, can infuse the same knowledge to help Chrysler. Fiat also has a strategic partner in the homegrown auto major Tata Motors, which can help Chrysler get a firm footing in India.

If Chrysler enters India, it will face its traditional rivals the General Motors and Ford who have already established themselves on the Indian road space. It could be a uphill task for them to sell their cars in India if they do not come up with their right moves.

GM and Ford are well known brands which Indians can relate to quite easily. But it is a challenge for Chrysler to make a dent in the Indian automotive space, as they have not yet proved their worth in India and Indians might be a little wary on putting their money on an unproven product.

Another problem is that Chrysler has no small cars its portfolio, which could be detrimental for the company’s fortunes in India, a country which tilts towards small cars. However, Chrysler can always brush it off as a simple problem, once it gets firmly established in the sedan and SUV market. Also the pricing factor has to be considered and Chrysler cannot sell cars at prices prevailing in United States. It would be impossible to sell cars at those rates, here in India.

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One thought on “Chrysler to piggyback Fiat

  1. Posted – Chrysler is unlikely to enter India now, through Fiat. if the company wanted the could have done so on their own before the economic slowdown started. Indian car industry was still open to new brands and Chrysler could have easily found a niche. But Chrysler did not enter India. It is proof enough that they never wanted to market their products here in the first place.

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