Tata & Fiat Section - (1) SANNYAS

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FIAT’s Strategic Alliance With TATA

ANWESH BANERJEE-040
ARKA SARKAR-044
NIKHIL SHINDE-134
NILADRI GANGULY-136
SATYEN NARWADE-193
SOHAM BANDYOPADHYAY-213
YOGESH RAI-254
Global
Situation of
Fiat before Fall in market
Share in Italy
Fall in market
share in Europe
Break-up of JV
with GM
Financial Losses

JV with The Jvs of


Powertrain and Losses of 12
TATA Fell from 60% in Fall from 13.6% in Worldwide billion between
the mid-1990s to 1990 to 6.5% in Purchasing made 2001 and 2004
30% in 2006 2006 in 2000 broke in
2005.

Your Organization Name | SDG Progress Report 2025


Why did FIAT collaborate
with TATA for India?

• By 2006, the automotive industry of india was


valued at $23bn and CAGR of car sales was 19.2%
in last 5 years
• Fiat’s Kurla Plant was not utlized to its full capacity
was making loss and also was affected by flood.

• Fiat needed a local partner since they needed them to


understand the market, customer and complicated value
chain.
• Tata was suitable for collaboration as it was India’s
largest automotive producer with 4.5 billion sales

• A visual way to track progress over time


CURRENT SITUATION OF
FIAT IN INDIA
Increased Sales Utility of Plant
Distribution of Models

Fiat sales in India The loss-making Kurla


Fiat’s Palio an d Palio ad v en tu r e w er e
increased by 51% in 1st ex p ected to b e m ar k eted an d d istr ib u ted b y plant was now being used
quarter after the tie-up. Tata Mo to r s w er e ex p ected in 11 cities. at excess capacity by
producing 250-300 units
of its own and painting
3000-4000 for Tata
WHY TATA AND FIAT ARE GOOD PARTNERS?

Collaborating Exploring the Values


benefits overseas market These are the guiding principles
that will
TATA was benefited from the
technological advancement & together influence your actions
and fulfill your company's
FIAT ‘s revenue started to
increase due to collaboration. mission and vision.
Collaboration to produce Fiat and
Tata utility vehicles in Argentina to
increase sales in Latin America.
BUSINESS
OPPORTUNITIES IN
INDIA
7 i n 1000 Indians owned In the past 5 years, the
The annual volu me o f
number of new car sales had
a car in com parison to 1 cars is expected to reach
grown at a CAGR of 19. 2%
of 2 people in USA. while the number of trucks from 1 .5 million to 3.5
grew at a CAGR of 24. 3%. million by 201 5.

UNEXPLORED GROWTH IN EXPANSION IN


MARKET IN CAR SALES PRODUCTION
INDIA
What Fiat can do to try to ensure success?
Product Quality and Innovation Improve Dealer Network and
Customer Service
Prio ritize im pro v in g p rod u c t Offering comprehensive after-
q u ality. sales support, timely
Fo cu s o n in n o v atio n to me e t maintenance services, and
In dian c on su me r pre fe ren ce s. addressing customer
complaints promptly.

Marketing and Promotion Research and Pricing Strategies


Development
Increase i nvestment i n Invest in R&D for vehicles
E v a lu a te p ric i n g t o e n su re
marketi ng campaigns to tailored to Indian
c o mp e t it iv e n e ss.
increase brand awareness preferences.
Offe r a tt ra c ti v e fi n a n c i n g o p ti o n s a n d
and att ract cust omers Focus on compact cars with
d isc o u n ts.
advanced features and fuel
efficiency.
• As per the given Information in the
case, we can infer th at the sales o f
Fiat’s cars have risen in India.

• TATA Moto rs go t an opportunity to IS THIS


increase its market share in Latin
America.
BUSINESS
• Howev er, the success of th e jo int
venture in th e lo ng term will d epend on
various factors like accep tance o f the
CASE
CONVINCING
produ cts, op eratio nal efficiency, and
effective distribution of the resources.

FOR JOINT
THANK
YOU!
-Team SANNYAS

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