Fiat to launch the Grande Punto in 2009

As predicted earlier fiat are all set to launch the Grande punto in India only after the Linea launch.The linea should be available in the Indian markets by September 2008 while the Grande punto would be out in the early part of 2009.

The grande punto would be competing in the premium hatchback category and would be priced on the lines of the Skoda fabia if not a notch higher.Maruti swift should continue to remain the cheapest offering in the segment for some time to come.

What this also means is that just like NDTV predicted the Linea would be competing more with D-segment sedans in terms of pricing atleast since Fiat will not price the Grande Punto and the Linea at around the same price tag otherwise nobody would head towards the Grande Punto.

It would be interesting to note how people accept Fiat as a premium brand in India but whatever happens its Tata who shall be the winner once again with Fiat cars not competing with Tata in the economy segment and Tata ensuring a presence in the premium segment with the help of Fiat.

For people interested in the future of the Palio,the Palio is going to be around atleast for a year or two and fiat plan to launch a CNG version by next year.

[Source:Sify]

Fiat Linea to compete with Honda civic

Unlike what you and me think,NDTV thinks that the Fiat linea would not compete with cars in the C-segment but instead be targeting competitors in the d-segment.Competition that includes the likes of the Honda civic and the Skoda octavia.

To tell you that I am suprised would be more of an understatement as the Linea was always supposed to be a c-segment car.NDTV predict the Linea to be priced between Rs.8-11 lakhs.They are not sure about the specifications of the car or the equipment it would come with.However they hinted that the linea would not get the 1.3L diesel multijet but a more powerful engine[perhaps the 1.9L one].

Now is this an intentional strategy by fiat to speculate a higher price and then suprise everybody with a cheaper price tag only time will tell but the wait should not be very long since the linea launch is just a few months away.

PS:Sticking to the NDTV report,NDTV also says that we should soon see the fiat multijet diesel engines on the chevrolet aveo range in india[That means both the hatch as well as the sedan].

[source:NDTV]

Fiat to replace Palio with newer generation vehicle

All good things have to end and Its time to finally say goodbye to the Palio.Having served fiat well in most developing markets and also at the same time being a favorite amongst car enthusiasts it would now be replaced by a new car developed by Fiat for India and similar markets.

Although it was a true class leader for a while,the palio had begun to show its age and a replacement was needed urgently,which fiat have responded to finally.What is not clear is whether the Palio legacy[name tag] would continue with the new car or fiat would go back to the UNO tag.The new car should be available in a year or two.What is also known is that it would be based on the existing fiat panda platform but would be a little bigger in size compared to the panda.

Fiat would do well to keep the same palio heritage with the new car even though they are developing a cheap car and continue with that excellent ride quality and tank like build.However fiat should not forget that aspiration levels even in developing markets has increased significantly and not end up with a car that looks like its from our grandfathers time from the inside.

Update:
Fiat now say they are developing not one but two small low cost cars.The first car would be positioned above the panda while the second would be positioned below the panda.

Car prices in India set to rise by as much as 5%

If are looking at buying a new car now may perhaps be the best time.Cars makers are all set to increase prices by as much as 5% due to rising costs and this cut is not limited to any particular manufacturer but all are likely to follow suit.

If you like the Maruti Dzire hurry up and buy the car.Maruti have made it very clear that the present prices are only introductory and may see a rise soon.GM,Toyota have hinted of a price rise in the near future,so if you want have any plans of buying your dream car hurry.

Business standard has done a calculation and here is what it could mean to you:

A 5% increase would mean* (in Rs)

Maruti Suzuki ->10,000-75,250
Hyundai ->14,100-82,400
Tata Motors ->16,850-58,300
Skoda ->35,000-90,000
Ford ->25,300-31,100
General Motors ->15,800-93,100
Fiat ->17,500-22,000
Honda ->35,800-98,000
Toyota ->36,000-1,10,000

* Prices are based on calculation of a rise of 5 per cent on models ranging from the lowest priced to the premium priced. Prices that were taken for this were all ex-showroom, Mumbai


[Source:Business Standard]

Would a Multi-car dealership strategy be successful?

Mr.Jagdish Khattar,I have great respect for the man.He has taken Maruti Suzki India to a completely different level and Maruti should thank him for what it is today.Even on a personal level I have got to interact with him and I was completely mesmerized by his management skills and his humility.For him customer really was king.

It comes as no surprise that even at this age after retiring from MSIL he is starting his own venture.He is think of setting up Multi-car dealerships across the country.Now the question really is how successful could this model be.Can cars be sold just like fridges,TV's and washing machines.

The problems I see are the after sales part where the whole company trained personnel concept goes for a toss also there could be a problem of logistics since different manufacturers are concerned while ensuring quality is not compromised. I would love to see Mr.Jagdish Khattar do more on this issue and assure us that standards are similar to those of single car dealerships.Initial expenditure for setting up such a dealership would be on the higher side which would also include training the concerned personnel and sourcing equipment.There is also the question of volumes,too little and the dealership could run into losses pretty soon while too high and the dealership may just not be able to handle them.In some places I have seen dealers managing two different manufacturers at the same place where mostly one arm has suffered because of the other[the present Tata-Fiat showroom is a classic example where the best work for tata and emphasis is given more on the sales of tata vehicles].

However with real estate prices touching sky-high levels and dealer margins becoming wafer thin this could certainly help in better revenue generation for car dealerships and also help improve the sales and service network of car manufacturers at the lowest possible costs.This may very well be the way forward.Year 2009 will see the first such dealerships from Mr. Khattar.

Price cuts announced by Car manufacturers in response to Budget 2008.

Following are the price cuts announced by the various manufacturers in response to the cut in excise duty,

Hyundai:
Reduction in prices in the range of Rs 8,730- Rs 13,278 on the Santro, Rs 11,047- Rs 16,324 on the i-10 and from Rs 13,169- Rs 19,419 on the Getz.

Maruti:
Reduction would range between Rs 6,500 for Maruti 800 to Rs 18,030 for Swift Diesel .Six models that qualify for lower excise benefit including Maruti 800, Omni, Zen, Wagon R, Swift Diesel and Alto.

General Motors :
To reduce prices in the range of Rs 7,500 –Rs 14,000 on the Spark and U-VA.

Tata Motors:
The prices of Indica range have been reduced in the range of Rs 8,500 to Rs 14,600 while prices of the recently launched Indigo CS have been reduced in a range of Rs 12,700 to Rs 15,300.

Skoda:
Reduction of upto Rs.18,000 on the Fabia diesel.

Fiat:
The three variants of Palio Stile will cost up to Rs 12,000 less from March 1.

Ford:
Has cut prices of the Fusion diesel by a whopping Rs.22,000 effective from March 1.

Update:
These are all the vehicles which qualify for the price cut and all manufacturers have passed on the benefit to the manufacturers.The other vehicles presently in the market do not qualify for the cut in excise duty.

[Source:The HinduBusinessline,The Statesman,Sify]

Fiat to launch the Linea by September 2008

Fiat have officially announced that they would be launching the line in India by September 2008,commercial production of which would begin by August 2008.

Have already spoken about the engine specs expected in my earlier post.
The Fiat Grande Punto and Linea engine specs[expected] for India

Also interesting to note that the linea would be here ahead of the Grande Punto.
Fiat India to launch the Linea ahead of the Grande Punto


Speaking of interesting and fiat,well Ferrari are here on a 13,000km roadtrip across India as part of a brand building exercise,Ferrari shall sell their cars in India within the next 3 years.But what is most striking is that for India,Ferrari have decided to go with an elephant as its mascot and its logo in India would be the Elephant instead of the famous prancing horse.Just wonder whose idea was that.

Tata unveil third generation Indica

Tata have unveiled the next generation of its most popular passenger vehicle the Indica, ten years since it was first launched on roads.

The new Indica has a 1.2L petrol engine and the fiat multijet 1.3L diesel engine.This indica would be an upgrade over the existing model in terms of pricing as well.Launch date not yet declared.This indica would be sold alongside the older generation model.

Image source:The Hindu Businessline


My first thoughts,The Indica third generation is a bit of a disappointment especially since it is to be sold in the B+ segment.With the Sumo grande thought Tata would take a bolder design style but this somehow does not make that cut hopefully as the launch date nears Tata bring about a few changes.


Press release of third generation Indica:

New Indica: The new generation Indica has been given a complete makeover and surprises with its stunning looks with a two box construction. It has a sporty frontal look with its distinctive wide-eyed stylised headlamps and pronounced signature Tata grill. The look is accentuated by muscular wheel arches sharp creases merging with its contoured surfaces and the sleek, full-length tail lamps. In the interior, the distinctive instrument cluster is now placed in the centre of the dashboard between the passenger and the driver seats.

The new Indica is bigger than the current Indica with a length of 3795 mm (existing 3675 mm), width of 1695 mm, height of 1550 mm and wheelbase of 2470 mm (existing 2400 mm). The rear sloping wind screen also increases the sense of spaciousness in the passenger cabin. The new Indica will be available with a new range of world class diesel and petrol engines and transmissions with a new suspension. The car will be offered with a new 1.3 litre Quadra-Jet Common Rail Direct Injection Diesel engine and a 1.2 litre Safire MPFI VVT Petrol engine, which will be manufactured at the new Tata-Fiat joint venture plant at Ranjangaon in Maharashtra, besides existing Tata powertrains. The car will sport a 5 speed synchromesh gearbox with overdrive, bigger 175/65 R 14 tubeless tyres and a twist beam suspension. The new Indica will be launched in the latter part of 2008 and will coexist with the present Indica range at a higher price point.
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Press release of second generation indica[please do not mix this with the one I have referred above]:

Indica V2 DICOR: The Indica V2 has been a leader in the diesel hatchback market in India, ever since its launch in 1998, when it created the diesel small car segment. In 2005, it strengthened its diesel portfolio with the launch of Indica V2 Turbo, a turbo-charged diesel car. It has now further expanded its diesel portfolio with the launch of its latest common rail diesel offering- the Indica V2 DICOR.

The car features a water-cooled 1.4 L direct injection common rail (DICOR) diesel engine with exhaust gas recirculation and an oxidation catalyst with a turbocharger and an intercooler. This in turn results in an enhanced output of 70 PS @ 4000 rpm and an increased torque of 140 Nm @ 1800-3000 rpm, resulting in excellent pick up and a superior overall driving experience. The DICOR engine also ensures linear power delivery from the start and up to 15% better fuel efficiency. The Indica V2 DICOR goes on sale immediately with a price (ex-showroom, Delhi) of Rs.4.25 lakhs.

Fiat India to launch the Linea ahead of the Grande Punto

In an apparent bid to cash in on the popularity of sedans[especially diesel],Fiat India plan to launch the Linea in India before the Grande Punto.

In my opinion this is a very wise strategy because now the Linea could be given a better identity.The C segment sedan's right now are selling well and there is not much of a choice as far as diesel engines[where as there certainly is demand for the same,even if Honda disagrees on that] are concerned so this is certainly a very wise decision by Fiat.Also they will not be directly competing with tata just yet with the Linea.

The linea would however be disappointingly be powered only by 1.4Lpetrol and 1.3L multijet diesel engines ,so don't expect to set the streets on fire,but yes they would be frugal to run and cheaper to buy.

Fiat say the localization levels for the Linea will be very high.

[Source:Hindu Business Line]

Edit: At the Auto Expo fiat say the Linea would be launched by September 2008,while the Palio is expected to get a diesel heart[1.3L MJD] by december[2007] end and would[palio diesel] be priced at 4.7 lakhs ex-showroom.

Related Post:
The Fiat Grande Punto and Linea engine specs[expected] for India

The Fiat Grande Punto and Linea engine specs[expected] for India

Fiat and Tata have signed a JV in India for producing the fiat 1.2L & 1.4L fire petrol engines as well as the 1.3L Multijet diesel engine,with the pricing suggested by the Media this is what i feel the engine options for the Grande Punto and the Linea in India would be.Note that the final specifications may differ and right now I am just speculating.But disappointingly the 1.9L Multijet diesel engines may not be available on the Fiat Linea as anticipated earlier.

Grande punto-> Petrol
1.2L 8V FIRE ,
1242cc,
65 PS (64 hp/48 kW) @5500 rpm,
102 N·m @3000 rpm,
0-100Kmph -> 14.5 s.

Grande punto-> Diesel
1.3L 16 Multijet 16V,
1248 cc,
75 PS (74 hp/55 kW) @4000 rpm,
190 N·m @1750 rpm,
0-100Kmph -> 13.6 s.

Linea -> Petrol
1.4L 8V FIRE ,
1368 cc,
77 PS (76 hp/57 kW) @ 6000 rpm,
115 N·m @3000 rpm,
0-100Kmph -> 14.6 s.

Linea -> Diesel
1.3L 16 Multijet 16V,
1248 cc,
90 PS (89 hp/66 kW) @4000 rpm,
200 N·m @1750 rpm,
0-100Kmph -> 11.9 s.


Engine specs taken from wikipedia