Fiat to Exit India Mart; May Focus on Jeep Brand – CORPORATE ETHOS

Fiat to Exit India Mart; May Focus on Jeep Brand

By: | February 5, 2019

Feb 5: Car maker Fiat is likely to withdraw from the Indian terrain without much delay. Linea, Grand Punto, Avventura and Abarth Punto are the cars marketed by Fiat in India. These cars, according to reports, do not follow the upcoming safety and emission rules.

The sales structure of the company shows that most of the Fiat cars are not popular in India. Fiat sold around 101 units of vehicles from December 2017 to November 2018 in the Indian market. The news is that the company does not intend to launch the upgrades of its cars which will follow the upcoming norms. It’s been a long time since the launch of Linea and the Punto in India but the company did not launch an upgrade of these cars till date. The derivatives of the Fiat Punto like the Abarth Punto, Urban Cross, and the Avventura are also outdated.

In 2016, with the CBU models like the Wrangler and Cherokee, Fiat-Chrysler introduced the latest Jeep brand into the Indian market. The newly launched Jeep Compass was well received by the Indian customers. Fiats plan is to stop marketing its vehicle in Indian. Meanwhile, it will continue to focus on the Jeep brand.

The new safety rules, Bharat New Vehicle Safety Assesment Program (BNVSAP) will come to action in October 2019. The ACI report reveals that the Fiat vehicles marketed in India do not follow the minimum safety requirements. The Indian government is to implement the BS-IV emission norms in 2020, which is tougher. The 1.3-liter multijet engine does not follow the upcoming BS-VI norms. A huge amount will be required to uplift the engine to an emission compliant one.  Fiat will have to spend on new technology even if they bring in a new car.

Therefore, the company has decided to halt marketing of Fiat cars in India and concentrate on the Jeep brand. With this, Fiat becomes the second leading carmaker to leave the Indian market. Due to the low popularity, Chevrolet backed by General Motors exited the Indian market in January 2018

The 1.3-litre multijet engine is also supplied by Fiat in India for various manufacturers. This will also be in vain once the new norms are implemented.

News is that the Italian carmaker has directed all its dealers to sell off all its non-ABS inventories soon. The norms which are to be implemented on April 1, 2019, will make the ABS system mandatory. The company will officially exit the market in October 2019 after the implementations are made by the government.