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Wednesday, 16 July 2008

Fiat is trying to make a comeback in the Indian car industry with its new Fiat 500. The car will be launched exactly 50 years after the launch of the original Fiat 500. Currently, it is difficult to test the compatibility between Fiat 500 and India. No one can say how well the 500 will work in the Indian car market.

The older version of Fiat 500 was appreciated by the consumers because of its looks and cheap price tag, but the latest version is a stylish two-door car with loads of luxurious amenities and a higher price tag!

The small car segment in India has been the most successful, but buying a small car mostly focuses on affordability. One Fiat 500 will cost the same as 12 Tata Nano cars or 6 Maruti 800 cars or 5 Maruti Alto cars or 4 Chevrolet Spark/Hyundai Santro/Tata Indica cars.

Fiat is completely dependant on the car’s advanced features and superb performance to overshadow the price factor. An elegant and striking exterior with loaded interiors may just help Fiat turn the tide and score a 500 win in India.

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Tuesday, 13 May 2008

Indian is already known as a hot destination for cheap OEM components. The car OEM component business is one of the fastest growing sectors in the country. The vendors here source not only to domestic brands but also to foreign made cars.

The need for manufacturing the components is due to the fact that they are cheaper by 15 percent than other countries. Exports of auto components have increased by 25 to 3.6 billion in the last fiscal year.

In order to take advantage of this, Fiat Group has planned to source 250 million euros from current 30 million euros, which is eight times more than its current buy. Fiat has formed a team of eight which will be increased to more than 50 persons in a few months, to sources vendors for OEM components.

Fiat owns some of the best known brands Aston Martin and Ferrari. By sourcing products from India, Fiat plans to become more competitive in the market.

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