Tata Motors, Fiat to halt competitive launches!

Italy’s Fiat and Tata Motors, locked in a carefully crafted partnership
in a competitive industry, will not launch models in segments where
they would have to compete with each other.

The two companies, which are in a wide-ranging tie-up, would have a
common strategy to take on competition in India, a top Fiat official
told Hindustan Times.
“Between the two of us, beginning with the Nano, we will have a
line-up of cars that would pretty much cover that part of the market,”
said Rajeev Kapoor, managing director, Fiat India Auto Private Ltd, the
Italian major’s local subsidiary.
The decision shows how deep the Tata-Fiat combine in India now runs into the manufacturing functions of the two companies.
Tata Motors is not readying any new car launches in the sub Rs.
8-lakh end of the market other than the Indigo Sedan, Rajiv Dube,
president, passenger cars, had told Hindustan Times last month.
The new Indigo sedan is an upgrade over the existing Indigo, where
Fiat does not have any models. Fiat will not be launching the high-end
Bravo, which is a hatchback originally planned for import into India.
FIAPL and Tata Motors are betting big on the Grande Punto. “It is
now time to get into the volume segment. The Punto is going to bring us
numbers,” said Kapur.
Grande Punto, FIAPL’s new car, will be priced above Tata’s Indica
Vista, but below the Honda Jazz and the Skoda Fabia, Kapoor said.
With the two Fiat cars, the Tata-Fiat combine will have the lower end of India’s car market pretty much covered.
The Tata-Fiat combine has close synergies. Tata Motors gets Fiat’s
technology and support. It also gets a share of the numbers that the
Linea and Grande Punto make. It gets to manufacture cars in Fiat’s
brand new Ranjangaon plant.
Fiat on the other hand gets the reach of Tata Motor showrooms in the
country, and the might of Tata Motors over its suppliers means Fiat’s
aggressive plan of cutting costs through buying Indian components
becomes easier.“We are looking at very high level of localisation. We will establish the localisation aggressively,” Kapoor said.

(Hindustan Times)

There's nothing big in this news, actually it is well known. Punto will be priced higher than Vista and Indigo vista will be priced lesser than Indigo.

No Bravo for India, at 22lacs, how many takers would be there?

this clearly shows that TATA is scared that FIAT will steal its share in the market if they compete together!

Crazy cat wrote:Indigo vista will be priced lesser than Indigo.

Did you want to post the opposite? How can Indigo Vista be priced below Normal Indigo? Indigo Vista will be expensive than Indica Vista which will place it in the Indigo XL, Linea Range.

Oops, that should be Linea, as this thread is between Fiat and Tata. Indigo Vista will be priced lesser than Linea.

I think Tata has realized the potential of Fiat products and people might end up buying Fiat products from Tata showrooms. :lol!: Hence Tata is in a move to ensure that no direct competition takes place as it will hamper Tata sales. Tata is cared of Fiat and is also aware of its inferior products.

I never knew the Fiat Company is so good like the way people describe it to be..