The FCA Group decides that Fiat leaves India to favor Jeep
When we met the current strategic plan from the FCA Group we saw that Fiat would focus on two specific regions. Europe and South America will be vital for the growth, and future, of the Italian firm, because it is where it is most established. In this way, the operations that it has in other countries remained in the air giving rise to the withdrawal of the India that they have just announced.
The range of Fiat in India, to this day, is formed by two very veteran models. The Point and Linea have endured the type as best they could, but no longer resist. The Point has been maintained thanks to three versions: Abarth, Urban Cross and Avventura Cross . The Linea , on the other hand, could only be marketed in a single version, so there was little to choose from.
Why does Fiat leave India?
Due to the veteran of the offered models, the sales of Fiat in India have been reduced in recent years. In 2016 delivery was reduced, compared to 2015, by 23 percent, to be 59 percent in 2017 compared to the previous year. To these numbers must be added the fall expected for 2018, since so far this year the deliveries have decreased a 76 percent . All in all, the Fiat Punto variants have delivered 490 units and Linea . The thing is worse, as it complies with 95 .
Considering this scenario, the FCA Group has been practical: cease sales of Fiat to boost those of Jeep . Since the American firm launched the new Compass in India, sales have multiplied exponentially. In this way, and thanks to the economic performance provided by the Compass, will cover the losses of Fiat and still have some money left over.
All in all, Fiat is not the only manufacturer who have decided to leave India in recent months. General Motors decided to put an end to its operations, because it was difficult to fight against Maruti-Suzuki, the king of the market. Another example of how things are in the country is Tata strong>, because after the fiasco of the Nano, it has not managed to keep the attention of the public.
Source - Grupo FCAYou may be interested