Fiat and Tata have agreed that, in order to further develop the Fiat brand in India, management control of Fiat’s commercial and distribution activities will be handed over to a separate Fiat Group owned company. Currently Tata Motors has been managing the distribution responsibility of the Fiat branded products in India through joint Tata-Fiat dealerships.
Announced in 2006, the Fiat-Tata joint venture also encompasses manufacturing activities located in Ranjangoan in Maharashtra. In its five years of operation, the industrial JV has produced some 190,000 cars and 337,000 powertrains. It will continue with these manufacturing activities as they are outside of the new distribution agreement and will supply cars and powertrains to Fiat and Tata.
Fiat will establish a new, separate, company which will assume responsibility for all commercial and service related activities from the current Tata-dedicated team assigned to manage the Fiat brand.
As told to Aadetya Sriram of Indianretailer.com, the spokesperson from Fiat said, “The association has been worthwhile for both the companies but considering Fiat have now tweaked their marketing and dealership strategy in the country, this development had to be announced. Fiat will now make its models available through its exclusive dealership showrooms.”