Fiat500: Struggling in Indian Market

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The fiat is a car produced by Italy based company. In this post I will be discussing only about Fiat500 model in Indian context. People used to call it Baby Fiat. This car has been launched in 2008 in Indian market. Fiat500 is competing globally with New Beetle from Volkswagen group and mini BMW. If we talk about in the global context it is a successful car. However this car is struggling in India market. In the early age of market this Fiat's car was choice of Indian consumers. As far as news are concern in India Fiat has some sort of problem with distribution channel. Here I am giving some marketing fact of this case-

1. As far as Fiat500 is concern the price of this car is around 15 lac which is less than New Beetle. But interesting point is having two years of launch in India they could sold only 68 units where as New Beetle is concern they sold 280 units within 5 months of launch even after quoting 5 lac more price than Fiat500.
2. Second point here is that Fiat500 is sharing same engine with Fiat punto and Fiat Linea. Again there is problem is that company should understand that this car is for niche market. So, high class people is the customer of Fiat500. If high class people buy this surely they will have some information about basic of car where they are spending 15lac. Customer might be thinking that why I should buy Fiat500 when we are getting same engine with Fiat punto and Fiat Linea by much lesser price.
3. Third point here is Fiat punto and Fiat Linea is cannibalizing Fiat500.
My analysis says company is deliberately making mistakes. They should understand needs and choices of cost-conscious Indian consumers. As far as Indian market is concern first they should resolve problem in distribution channel for making great reach and something about car also.

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