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Will Jeep’s launch mark the end of the road for the iconic Fiat brand in India?
NEW DELHI : After five decades in India, under different owners, Fiat cars might soon be given a fond farewell. The auto-maker’s new global owner, Fiat Chrysler
NEW DELHI : After five decades in India, under different owners, Fiat cars might soon be given a fond farewell. The auto-maker’s new global owner, Fiat Chrysler Automobiles (FCA), plans to focus on Jeep, its premium sports utility vehicle (SUV) launched last week, in the Indian market.
When Fiat first hit Indian roads in 1954, the cars were fully imported and sold by Premier Automobiles, promoted by the Walchand Group. In the 1970s, Premier started manufacturing the cars themselves and called them Premier Padmini (named after the princess of Chittor, a princely state in Rajasthan).
The Padminis symbolised the wealthy Indian — only a handful could afford them — became the symbol of Mumbai, before the Maharashtra government banned 15-year-old taxis. It was economical, it had a boot, and any roadside mechanic could fix it. But Premier had stopped manufacturing the Padmini in 2000.
Forty five years later, the absence of a future product pipeline may spell the end of Fiat in India, three people familiar with the company’s plans said.
“The Fiat brand will be phased out in the next three years,” according to an executive, who heads the India operations of a London-based consultancy firm. The company, though, differs. “It would be rather speculative to assume that Fiat will have no new product in India in future. We are working on many options and will announce our product plan at the right time,” said Kevin Flynn, president and MD of Fiat Chrysler Automobiles (India).
“Jeep will be the FCA’s mainstay brand in emerging markets, including India… The phase-out is a possibility as Fiat’s future product pipeline is dry,” said Deepesh Rathore, co-founder of London-based Emerging Markets Automotive Advisors.
Fiat has abandoned its plan to bring replacements for the Punto and Linea, something it was planning a year ago, said another senior analyst who forecasts automobile production for a Londonbased consultancy firm.
Fiat sold 2,150 cars in India between April and July. Maruti Suzuki, the country’s largest carmaker, sold 448,104 units during the same period.
Meanwhile, the FCA plans to come out with a new Jeep vehicle by mid-2017, made-in-India and designed for emerging markets.
“Fiat can continue selling its current portfolio and delay future launches,” said Anil Sharma, senior analyst of IHS World Markets Automotive.
